Lakeland Middle District Bankruptcy Court

Filing for bankruptcy is never easy but sometimes it is the only way. Creditors will call and try to collect your debt if you do not make timely payments. This can mean numerous calls several times per day from various companies all trying to collect a debt. Most people can probably agree that the numerous calls are stressful and aggravating.

By law, individuals who file bankruptcy are protected from harassing creditor calls. The Automatic Stay Law makes it illegal for creditors to continuously harass consumers once they have filed bankruptcy. The amount of debt does not matter because once you file your petition for bankruptcy your creditors cannot try and collect your debts.

Your creditor cannot contact you by phone, mail or through a representative once you have filed. Creditors cannot take actions such as enforcing a lien or pursuing legal action. It is important to know this law is upheld by the United States legal system and it is listed in Section 362 of the United States Bankruptcy Code.

  Section 362 lays out the facts and informs consumers that are immediately protected from all forms of debt once they file bankruptcy. Consumers should know that the bankruptcy courts have up to ten days to tell creditors about bankruptcy filings.

Your protection status by law does not change but creditors are not always informed immediately after a consumer files. 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. For instance if you are facing foreclosure, the automatic stay will stop the proceedings even if just temporarily. 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.

The automatic stay law is very beneficial because it protects consumers from wage garnishments as well as harassing collection calls. If your creditor is suing you once you file bankruptcy the automatic stay law protects you from legal action. The automatic stay law does not protect consumers in all situations.

If you are involved in criminal proceedings or receive a criminal conviction you are not protected by the automatic stay. In certain cases the IRS has the right to contact a consumer regarding financial information as well as payment for a debt.

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