Bankruptcy's Automatic Stay Stops Creditor Harassment
One of the most important benefits of bankruptcy appears as soon as you file for relief under any chapter of the U.S. Bankruptcy Code. Collections come to a sudden stop, and your creditors have to leave you alone. Known as the automatic stay, this feature of the bankruptcy process is essential to protecting the system of debt relief created under federal law.
To learn how you can benefit immediately from the automatic stay of bankruptcy, contact us to speak with a knowledgeable lawyer at O'Bryan Law Offices for a free consultation. With four locations, our law firm helps people in Kentucky and Indiana stop creditor harassment and get on track toward restoring their financial independence.
Creditors' collection efforts, phone calls and creditor harassment stop immediately
You don't need to file separate motions or affidavits to benefit from the automatic stay. All you need is your case number and our phone number. All listed creditors are notified promptly of your bankruptcy case, and most know enough to stop all collection activity.
Once in a while, you might hear from a creditor by mistake, but giving them your case number and our name will generally make them go away. Creditors who continue to pursue collections or harassment are violating the automatic stay and can be punished in court.
Not only does the automatic stay interrupt standard collection calls and letters, it also covers such other actions as the following:
- Any lawsuit against a debtor in bankruptcy
- Garnishment, attachment, repossession or other collection strategies
- Mortgage foreclosure
- Enforcement of judgments or liens
There are a few exceptions to the automatic stay that generally have to do with child support and alimony obligations. Under some circumstances, a creditor can also ask the bankruptcy court for permission — relief from the automatic stay — to resume collection efforts. These are most common when the creditor's claim is supported by an interest in collateral. We can negotiate with the creditor to protect your interests in these situations.
Contact one of our experienced attorneys at O'Bryan Law Offices today to learn more about your case and how to stop creditor harassment.