How Quickly Will Creditors Stop after Filing Bankruptcy?

If you are harassed daily by bill collectors wanting their pound of flesh and need relief from financial pressure, the US Bankruptcy Code has you covered. Enacted by Congress in order to give individuals a fresh start and clean financial slate, filing bankruptcy has many benefits. One of the best attributes of bankruptcy is the “automatic stay” that prevents any collection attempts until a conclusion has been reached in your bankruptcy case. But how long does it take for creditors to get the message and give you a little peace and quiet after filing bankruptcy?

Automatic Stay in Texas

The automatic stay doesn’t simply inform creditors from calling or sending letters (they can send them to your bankruptcy lawyer but not you). The automatic stay also has the power to stop lawsuits, foreclosures, repossessions, and even utility disconnects.

When Will Creditors Stop Contact Me?

The automatic stay goes into effect the moment you turn in your paperwork to the county clerk for filing. The stay is automatically entered when the bankruptcy court accepts your petition. In order for your creditors to be notified, you must fill out what is known as a “mailing matrix” complete with all your creditors, and their contact information and addresses. The court will then use this to notify your creditors, but the information takes several days to be placed in the mail and subsequently make it to your creditors’ mailboxes.

Exceptions to the Automatic Stay

The automatic stay is power yes, but not universal and there are some exceptions to the automatic stay that you should be aware of. While lawsuits regarding debt will be placed on hold, criminal courts are another matter and you’ll still have to defend yourself in any criminal cases during bankruptcy. Additionally, certain family court proceedings and tax collection procedures will be allowed to continue unimpeded during the course of your bankruptcy case.

Hire a Texas Bankruptcy Attorney

In all, you should expect all creditors to be notified within 2 weeks of filing your case, but you can tell them you have filed bankruptcy yourself. Having your bankruptcy petition information handy is useful in informing creditors who haven’t yet received their notice.

Your first step before filing bankruptcy is to hire a Fort Worth Bankruptcy Attorney to ensure your consumer and civil rights are protected. Additionally, having a bankruptcy attorney can be crucial in helping you avoid debt lawsuits and helping you navigate the removal of judgment liens from previous lawsuits. Bankruptcy attorneys know how an automatic stay works and how to put it to work for you.