There are many different reasons for pursuing bankruptcy. Getting a new financial start and being able to move forward into the future by being in control of your finances is obviously the most important. In the meantime, one of the obvious benefits of filing for bankruptcy is that you can use it as a key tool to end the harassment of creditors. Read on to learn more about how it works, why it's so beneficial, and how you can leverage it to achieve your financial goals.
It's not just a potential outcome, it's actually mandated by federal law. How exactly is this possible? Well, the automatic stay goes into effect as soon as you file for bankruptcy. Your benefits include stopping many actions taken against you immediately, including harassment of creditors.
It also includes collection agencies trying to repossess your property and lawsuits against you. Therefore, the best way to stop the harassment of creditors is to actually file for bankruptcy and let this automatic stay provide you with the outcome you were looking for.
What qualifies as creditors harassment? There is a range of specific rules in play here. But typically, creditors harassment includes increasing your debt or misrepresenting the amount owed, repetitive calls, calling you at work, or calling you outside of reasonable weekdays, or disclosing the debt. to third parties.
While it is difficult to enforce these rules, once you file for bankruptcy, creditors usually know they need to back down. Otherwise, additional steps can be taken by you and your legal team. Therefore, once you file for bankruptcy, you can at least get your plate cleared of excessive phone calls, letters, and threats, while still pursuing your financial resolutions. It certainly provides some peace of mind and reduces the stress and hassle you face during this difficult time.
Before declaring bankruptcy, be sure to consult an experienced lawyer who can guide you through the process. While ending the harassment of creditors is a huge bonus to filing for bankruptcy, there are still a series of ups and downs to consider carefully.
There are also different chapters on bankruptcy that provide you with different types of financial remedies and different levels of property retention. This isn't always the right solution, so your personal circumstances and goals certainly come into play, but the automatic stay's abilities to instantly stop harassment of creditors are a big plus.