For some individuals, a fear of checking the mail, answering the phone, or looking at messages becomes crushing because they’re always concerned that a debt collector is trying to contact them. Recently, laws changed so creditors can even send you direct messages on social media to try to collect a debt.
When you can’t pay your creditors you have, you’ll probably be ready to do something so that they stop trying to collect. One option that you have is bankruptcy. This is a legal way to get out of debt that comes with the issuance of an automatic stay.
What’s the automatic stay?
Most creditors won’t receive the full amount they’re due when you file for bankruptcy. Once you file your case, the court issues an automatic stay. This order puts all your creditors on an even field for collection. It prohibits them from contacting you to collect on the debt. Instead, they have to get what’s possible from the bankruptcy trustee based on their priority level in your case. Once they get what the trustee gives them, they’ll have to do away with the remainder of the debt.
If a creditor contacts you for payment once you’ve filed for bankruptcy, you can direct them to your legal representation. You can also alert them to the filing of the case so they know. Be sure to keep a record of any continued collection calls, visits, letters, or messages.
If you’re drowning in debt, now is the time to act. Bankruptcy might be the answer you’re looking for so that you can enjoy a fresh financial start.