Personal Bankruptcy Questions

Keep Collectors At Bay

Few things can compare to the stress of having a bill collector call you day after day demanding payment.  If you have ever gotten behind on your bills, you know how devastating this can be on both your financial and emotional life.  It can affect your family relationships and your mood at work.

The kind of worries that come with financial problems can put a great strain on your body and eventually make you sick.  If you’re buried under excessive debt and are desperately searching for a way out, you may be wondering if it’s possible to get those bill collectors to stop hounding you.  This is one of the most common bankruptcy questions we hear.

Bankruptcy’s Protection

Well, one option that is available to you is declaring personal bankruptcy.  This is a serious step which you should consider carefully with a lawyer, but it is a viable option for many people who simply can’t see the way out of their debt problems.  How does bankruptcy get rid of the harassment from debt collectors?

Well, for one thing there is a provision in the bankruptcy law called the automatic stay.  This means that once you file for bankruptcy, bill collectors cannot bother you until your case has been resolved.  That means they cannot even contact you regarding your overdue bills.

They certainly cannot proceed with foreclosure or try to garnish your wages once your request has gone through with the bankruptcy court.  If they do, they can get into serious trouble and have their hands slapped by a Federal bankruptcy judge.

Temporary Relief Can Lead To Permanent Solutions

Now, it’s true that this is a temporary provision while the ultimate outcome depends on your bankruptcy case.  If you and your lawyer are successful, you may be able to wipe out the steps forever.  The bankruptcy automatic stay can at least provide a much needed respite from your financial headaches.  For a long-term solution, you have to make the case to the judge that you’re unable to pay your debts.  This requires more knowledge about the bankruptcy process.