How can an automatic stay stop creditor harassment?

Millions of Americans struggle to keep up with expenses accumulated from medical care, credit card bills, mortgages, car payments, loans and other expenses. If you are one of the many who are buried under a pile of debt, you may know what it feels like to be the victim of harassing phone calls from creditors and collection agencies. These agencies often call debtors all hours of the day and night in an attempt to receive a payment on the account. Surprisingly, some collectors use extreme measures to collect debt. Some have gone as far as threatening to throw people in jail, harm their pets or take their children away from the home. Under the Fair Debt Collection Practices Act, these tactics are prohibited. Yet, an automatic stay can help to ensure collection agencies and creditors are unable to contact you regarding your debt.

Once you file for bankruptcy, an automatic stay is put in place and you can begin to feel relief from creditor calls. The creditors that are listed on your bankruptcy paperwork are contacted and given the automatic stay. As a result, these agencies are no longer able to contact you regarding your debt. An automatic stay also prohibits collection agencies from taking legal action, garnishing your wages or calling your home day and night. The stay may remain in place until your bankruptcy is discharged or until authorized by the trustee presiding over the case.

This information is intended to educate and should not be taken as legal advice.

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