One of the biggest sources of stress when in debt is the constant collection attempts of creditors. Many people feel trapped and hopeless when it comes to dealing with creditors, which they fear will not end just because they have entered bankruptcy. The truth is, once you enter bankruptcy creditors are legally prohibited from contacting you or making further collection attempts.
One of the most utilized benefits of bankruptcy is protection from creditors. When you file for bankruptcy an order is issued called an automatic stay. This order is sent to all of your creditors notifying them of your bankruptcy and preventing them from contacting you further.
In a Chapter 7 case, the automatic stay becomes permanent and any debts that are discharged cannot be collected by creditors in the future. In a Chapter 13 case, the automatic stay prevents creditors from attempting to collect on the debt owed outside of the conditions specified in the Chapter 13 plan.
The best part about the automatic stay is that it affords you legal protection against creditors. If a creditor violates the automatic stay order, they could face serious consequences.