When you file for bankruptcy an automatic stay takes effect immediately, which means, technically they’re supposed to stop immediately,. However, they won’t necessarily know you filed your petition within the first few days; they need reasonable time to receive the notice in the mail, which means they should have stopped within a week or so. If you continue getting calls after that, it can be taken care of with a call from your attorney.
I always tell my clients to give creditor my number and have them talk to me, and I don’t get very many calls because most creditors who find out an attorney’s involved and a bankruptcy filed, they back off fast. All you need to do is tell them you filed bankruptcy, tell them to not contact you anymore, and give them your attorney’s number if they have any questions.
The thing people hate most is when the call the debtor’s employer because it’s embarrassing, and they will speak to anyone they can get hold of, including neighbors, banks and anyone they think might get them their money. That can be extremely stressful and harassing for people and it stops when you file bankruptcy.
How Do Debt Consolidation Services Function?
Such companies play off your fear of financial troubles, as well as your fear of filing bankruptcy, which is seen as a last resort, and they offer you what they tell you are the benefits of bankruptcy without actually having to file bankruptcy; they claim they can reduce your debt and let you pay it all off with a convenient and affordable monthly payment. Of course, whether they can actually deliver on that is another story.
There are many stories out there about these companies being fraudulent; some of them disappear with your money, or fail to do the work that’s necessary, or failing to contact your creditors at all. In many cases, customers of these services have no idea whether their debts are being paid; the whole thing is a fly-by-night scary sort of a thing, since you don’t know who they are or whether they have the authority to even deal with your debt. Therefore, I wouldn’t advise anyone to use those.
Can a Job Loss Be Devastating?
Many people and families these days are living from paycheck to paycheck, and when that paycheck stops even once, it puts you behind, financially. Everyone needs food and shelter, so everything else has to be put on hold, which can put people like that behind really fast. Once you get way behind, bankruptcy can eliminate a lot of the pressure, by stopping the monthly payments and eliminating the extra debt, to get you get you back on your feet.
The most important thing to keep in mind about bankruptcy is that the automatic stay is the most powerful force in bankruptcy; it stops repossessions and foreclosures, it stops lawsuits from moving forward, it stops creditors’ constant calls, and it allows you to either renegotiate your debts or eliminate them altogether, and to stop your financial life from sinking further. Bankruptcy allows you to catch a breath, get yourself organized and to make a plan of action to start over fresh with a clean slate; it’s powerful and it’s fast.
For more information on Creditors Stopped by Automatic Stay, a free initial consultation is your best next step. Get the information and legal answers you’re seeking by calling (801) 441-2013 today.