Seeing collection notices in the mail and getting phone calls about debts you owe can be a stressful and disheartening experience. When you know you don’t have the money to pay, you may feel helpless and want to find a solution to this issue.
One option that you may consider is filing for bankruptcy. You can file either Chapter 7 or Chapter 13. Both of these can help you to get the fresh financial start you need, and there’s another benefit that may help you – the automatic stay.
Collection attempts are forbidden
Once you file for bankruptcy, creditors can’t contact you to demand payments because of a court order known as an automatic stay. Instead, they have to go through the court to get what’s due to them through the bankruptcy process. This is important because there’s a set priority system for debts, so most creditors won’t get the full balance they’re trying to collect from you.
Since they can’t try to collect payments, you don’t have to worry about the letters, phone calls, text messages and other communication methods. This can give you time to reset your finances while knowing the creditors will get what’s due to them.
The automatic stay is only one part of filing for bankruptcy. You also have some responsibilities to meet during the process. Working with someone who’s familiar with bankruptcy cases can benefit you greatly so you can better ensure you’re making the choices that are best for your needs.