Bankruptcy Could Stop Debt Collection and Lawsuits
If you are facing creditors seeking payment or legal action surrounding debt, consider that bankruptcy may be able to stop debt collection and a debt-related lawsuit. Bankruptcy is a legal mechanism that helps individuals find some breathing room in their financial situation, and get their feet back on the ground following struggles with overwhelming debt.
A high level of debt can become unbearable when creditors and debt collection agencies hound them for payment. Nobody wants to be in debt, but the problem is only made worse by phone calls, letters and house visits from undesirable debt collectors. Fortunately, filing for bankruptcy may be able to provide relief from such treatment, as well as from lawsuits that arise from creditors over unpaid debts.
You can learn more about the relief that bankruptcy could offer by talking to one of our sponsoring bankruptcy attorneys, who can answer your questions and may be able to provide insight into the process. If you would like to get in touch with an attorney near you, fill out the form below. You can arrange a free, no-obligation initial consultation today.
Bankruptcy and the Automatic Stay
The automatic stay is a legal mechanism in the bankruptcy filing process. Once a person files for bankruptcy, the automatic stay kicks in and prevents debt collection agencies from doing anything to pursue payment on outstanding debts included in the bankruptcy filing. This means that creditors cannot call, write or physically approach a debtor to get them to pay off their debts.
In addition, the automatic stay freezes any lawsuits or legal proceedings that are related to outstanding debt, and it can also prevent a mortgage foreclosure before it happens.
Many individuals have felt the sense of relief that follows the automatic stay and its function of providing debtors with relief who are taking action to relieve their debt via Chapter 7 bankruptcy or to reorganize their debt via Chapter 13 bankruptcy.
One of our sponsoring bankruptcy attorneys might be able to explain how bankruptcy and the automatic stay could have an impact on your case if you are facing foreclosure, lawsuits or insistent debt collection agencies.
Call us today at 877-833-2410 or fill out our free case evaluation form for more information about how to get in touch with one of our sponsoring bankruptcy attorneys.