Stop Harassing Calls
When faced with financial hardships, paying off debts can be a difficult task. The last thing you need is another creditor calling to harass you to make a payment. Debt collectors are relentless in their pursuit to collect on a debt and rarely consider the difficult financial situation you are experiencing. Often times, creditors will refuse negotiation efforts and insist all debts must be paid in full. Creditors may threaten debtors via phone, visits to their homes and by notifying credit agencies of delinquency. Bankruptcy can provide relief from collection efforts and protect you from the persistent calls from creditors.
Filing a Chapter 7 bankruptcy allows for a debtor to request having their debts erased through a bankruptcy discharge. The courts will determine you eligibility based on your inability to pay for the debts. Some of your assets may be seized and liquidated in order to satisfy the debt payments. However, Texas is a lenient state offering many exemptions that allow you to keep most of your property in bankruptcy. In a Chapter 13 bankruptcy, the court will develop a repayment plan to be presented to the creditors. The debtor is held responsible for repaying their debts with more favorable terms, such as reduced amount or lengthened time to repay the debt.
Stop Collection Attempts
When you file for bankruptcy, the court issues an automatic stay that halts all collection efforts by creditors. The automatic stay provides protection under a Federal law that prevents creditors from contacting you and attempts to collect on debts. The automatic stay places protection over the filer for the duration of the bankruptcy. If you receive a discharge through Chapter 7, the automatic stay becomes permanent and any debts that are owed cannot be collected by creditors. Similarly, once the repayment plan has been presented to the creditor in a Chapter 13 case, the automatic stay becomes permanent and prohibits creditors from collecting outside of the specified terms of the plan.
Some debt collectors may continue to make collection attempts after the bankruptcy has been filed. It is important that you notify your creditors by sending a copy of your “Notice of Filing Bankruptcy”. Any creditor that has received notification, and continues to make attempts to collect payment on the debt, is in violation of the Bankruptcy Code. Creditors that fail to adhere to these laws can be subject to fees and legal action.
A bankruptcy attorney can assist you with all the paperwork and processes of a bankruptcy proceeding. Filing for bankruptcy can be an overwhelming process. Contact one of our experienced bankruptcy attorneys to answer any questions you may have and guide you through the process. Our attorneys aim to assist you in getting out of debt with ease.