Home Finance Filing Bankruptcy to Stop Creditor Harassment

Filing Bankruptcy to Stop Creditor Harassment

There are many different reasons to pursue bankruptcy. Getting a fresh financial start and being able to move ahead into the future in control of your finances is obviously the most important. In the meantime though, one of the clear benefits of filing for bankruptcy is that you can use it as a key tool to stop creditor harassment. Continue reading to learn more about how this works, why it’s so beneficial, and how you can capitalize on it to achieve your financial goals.

That’s not just a potential outcome, it’s actually mandated by Federal law. How exactly is this made possible? Well, the Automatic Stay kicks in as soon as you file for bankruptcy. Your benefits from this include immediately stopping many of the actions being taken against you, including creditor harassment.

This also includes collection agencies trying to repossess your property, and lawsuits being filed against you. Therefore, the best way to stop creditor harassment is actually to file bankruptcy and let that Automatic Stay provide you with the outcome you’ve been seeking.

What qualifies as creditor harassment though? There’s a range of specific rules in play here. But generally, creditor harassment includes adding to your debt or misrepresenting how much is owed, calling repetitively, calling you at work, or calling you outside of reasonable weekday hours, or disclosing the debt to third parties.

While it’s difficult to have these rules enforced, once you file for bankruptcy, creditors generally know they have to back off. If not, further action can be taken by yourself and your legal team. Therefore, once you file for bankruptcy, you can at least get your plate cleared of excessive phone calls, letters and threats, as you pursue your financial resolutions. It certainly provides some peace of mind and reduces the stress and hassle that you’re facing during this difficult time.

Before filing for bankruptcy, be sure to consult with an experienced attorney who will be able to guide you through the process. While stopping creditor harassment is a huge bonus to filing bankruptcy, there are still a range of ups and downs to carefully consider.

There are also different chapters of bankruptcy which provide you with different types of financial remedies, and different levels of property retention as well. It’s not always the right solution, so your personal circumstances and goals certainly come into play, but the Automatic Stay’s capabilities to instantly stop creditor harassment is a major plus.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Commercial Business Liability Insurance: A Summary of Business Liability Insurance Policies

It doesn't matter what kind of industry a business is involved in: there is always the potential to be held liable for some...

Beneficial Choices Commercial Insurance Clovis Gives an Individual

Commercial insurance is important for business entrepreneurs irrespective of the size of their business. Apart from comprehensiveness, the Commercial Insurance Clovis gives must also...

General Liability Insurance for Small Business Overview: A Quick Beginner’s Guide to Policies

Each business has its own needs, but you still want to make sure you are covered by some insurance, no matter how small your...

Commercial Liability Insurance: An Introduction to GL Insurance, Its Covers, and What to Look For

Small business owners tend to be optimistic, and therefore often underestimate the amount of insurance they need. Accidents happen. There is always the possibility...

Recent Comments