Some consumers are forced to file bankruptcy after they have exhausted every option. Creditors will call and try to collect your debt if you do not make timely payments. You may get call after call from your creditors as they try to collect your debt. The high call volume is stressful and aggravating.
By law, individuals who file bankruptcy are protected from harassing creditor calls. The Automatic Stay Law makes it illegal for any creditor to continuously harass a consumer after they have filed bankruptcy. Consumers should not worry about the amount of debt they owe because regardless of the amount creditors cannot harass them once they file bankruptcy.
Creditors are prohibited from contacting consumers by phone, mail or a third party representative once they file the petition. Creditors are also prevented from enforcing any liens or starting legal action. This law is a part of the United States legal system and it can be found in Section 362 of the United States Bankruptcy Code.
Â Section 362 lays out the facts and informs consumers that are immediately protected from all forms of debt once they file bankruptcy. However, you should beware that the bankruptcy court has up to ten days to notify each creditor after you formally file your petition.
Though your protection begins immediately, your creditors may not be aware of your current situation. You should contact each creditor as soon as possible and let them know about your situation. For many people the automatic stay may give them a little more time to take care of pressing financial matters. If your home is in foreclosure the automatic stay will stop the proceedings. Show your bankruptcy information to your creditors as soon as possible especially if your house has already been put on the market or has been sold.
According to the automatic stay laws consumers are protecting from wage garnishments and harassing collection calls. If you are being sued by your creditors for unpaid debts the automatic stay law protects you from legal action. You should be aware of the situations where the automatic stay law does not apply
If you have broken the law the automatic stay law does not provide protection for criminal proceedings or convictions. Certain types of IRS tax proceedings are not exempt and they have the right to try and collect information and any money they are owed.
Tampa Bankruptcy Attorney, Darrin T. Mish is the founder of the Tampa Bay Bankruptcy Center,P.A. for almost twenty years, Mr. Mish has been a sealous advocate for debtors throughout the State of Florida. Call For a free consultation at (813) 200-4133 or vist hs website at : Tampa Bankruptcy Pro