One of the unexpected yet pleasant byproducts of filing for bankruptcy is that it puts an immediate stop to harassment by your creditors. In legal terms, this is known as the automatic stay and is designed to protect you from harsh collection attempts on the part of your creditors.
Under the automatic stay, creditors are prohibited from engaging in the following activities.
- Calling you at home or work
- Sending you communications via letters, emails and texts
- Foreclosing on your home
- Trying to take back property
- Filing or continuing a lawsuit
The automatic stay also protects you from evictions, disconnection of utilities like electricity or water and wage garnishments. You should understand that it may take a little time for these creditors to stop their prohibited activities. Unfortunately, some creditors do not stop at all, which can be frustrating and disheartening.
If you continue to be harassed or threatened by the organizations to whom you owe, please reach out to your bankruptcy attorney. He or she can take legal steps to prevent creditors from bothering or threatening you during your bankruptcy journey.
Even if you are still deciding whether to pursue a chapter 7 or chapter 11 bankruptcy, a lawyer may be able to help you deal with creditor harassment. Creditors do have the right to try to collect on the debts owed to them, but harassment is illegal. As such, you have options at your disposal while you are making important decisions about your financial situation.
Reach out to an advocate that can help you stop the harassment. This step can also aid in your efforts to find a solution for your debt while possibly holding on to the property you care about.
