Learn How Bankruptcy Stops Creditor Harassment
Regardless of which bankruptcy chapter you're filing under, one of the most powerful benefits of bankruptcy relief kicks in immediately — the protection from creditor collection activity you get under bankruptcy's automatic stay.
This provision of the Bankruptcy Code puts a complete halt to virtually all creditor attempts to collect a debt. And it goes into effect without doing anything other than filing your bankruptcy petition, which is what makes it automatic. To learn how the protection of the automatic stay can go to work for you, contact an attorney at the ANH Legal Group for a free consultation.
ANH Legal Group - Woodland Hills - Irvine - Oakland - San Jose
With offices in both Northern and Southern California, our lawyers advise individual consumers, married couples and small businesses about the full range of bankruptcy issues. For some clients, the ability to put a stop to creditor harassment by itself represents the main value of a bankruptcy case, with the discharge of indebtedness just a side benefit.
Without bankruptcy court permission that the creditor can request and the debtor can oppose, and subject to only a very few exceptions, creditors cannot engage in any of the following activities to collect a claim or debt that existed at the time of the bankruptcy filing:
- Collection calls or letters
- Repossession of collateral securing a creditor's claim, including mortgage foreclosure
- Commencement or continuation of a lawsuit to liquidate a claim or enforce a debt
- Wage garnishment
- Enforcement of a judgment lien
- Attachment of bank accounts or other assets
The automatic stay applies to secured and unsecured claims, dischargeable and nondischargeable debts, business and consumer debts, and even tax claims. The main question is whether the claim existed at the time the bankruptcy case was filed.
The most important exceptions to the automatic stay involve criminal cases and family court matters involving child support, spousal support or paternity. Bankruptcy will even interrupt a divorce case.
Call the ANH Legal Group at 888-9-GOT LAW (888-946-8529)
Whether the creditor's collection efforts amount to harassment or legitimate business activities is beside the point. What matters is the interference those efforts represent for the debtor's right to bankruptcy protection. To learn more about the ways you can benefit from the automatic stay, contact a lawyer at the ANH Legal Group in Greater Los Angeles, Orange County or the Bay Area.
We are a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code.
