Filing bankruptcy provides many benefits. The most important benefit is that you are able to have most of your debt eliminated, and no longer considered due by the creditor. Another important benefit is that of the automatic stay. This legal mechanism is put in place automatically, upon the filing of the case. What this means is that all creditors are automatically prevented (stayed) from contacting you to collect a debt. The purpose of bankruptcy is to give the honest but unfortunate debt a fresh start, which begins with being given a chance to breathe and get a break from the calls and letters from collectors.
The bankruptcy law is where the provision of the automatic stay can be found. It stops the following actions by creditors and debt collectors:
● Collection calls must immediately cease.
● Any wage garnishment must be released and no further wages withheld from your paycheck.
● Foreclosures must stop, giving you the opportunity to stay in your home without fear of it being auctioned off or sold out from under you.
If a creditor fails to abide by the automatic stay and persists in calls or other collection activities you do have recourse. You can file a case against the offending creditor within your bankruptcy and depending on the severity of the violation, are entitled to monetary damages. We have experience going after creditors that break the law, and are happy to help you if this has happened to you.
If you are receiving collection calls or letters after having filed bankruptcy, call a knowledgeable attorney to discuss your options. We can help you understand your choices and make a decision that works for you. Call a Plantation, Florida debt relief attorney today for more information.
