When to Turn to Bankruptcy for Relief from Creditors

With mounting credit card debt and creditors calling you at home and work, if you haven’t asked yourself yet "when is enough really enough?" you will soon. Not only does credit card debt put a strain on a person, a family, and a marriage, some relentless creditors just do not make the process any easier to deal with.

Will Filing For Bankruptcy Stop the Creditor Calls?

Assuming you have tried other conventional methods of debt elimination such as discussing your options with your creditors or speaking with a credit counselor, you will find that filing for bankruptcy may end a lot of stress associated with your debt.

If you are worried about losing your home, your cars, or other valuable assets, you need to consult with a bankruptcy attorney to go over your options. In most cases, filing for bankruptcy will help eliminate the unsecured debt and allow you to keep some of your assets, all while putting a stop to the stressful and harassing creditor and collection calls.

How Bankruptcy Offers Protection from Creditors

Once your attorney files your bankruptcy petition with the bankruptcy courts, an automatic stay goes into effect. Your creditors receive notification that you have filed for bankruptcy protection and must seize all collection efforts from you.

Creditors cannot pursue you for payment for your debts while under the automatic stay. All collection attempts must stop. This includes all phone calls and letters attempting to collect on your debts. If creditors do pursue you, they would be violating the law and you can take legal action against them for doing so. The automatic stay will continue to be effect until the discharge of your bankruptcy case.

What Happens Next?

If there are no objections by any of your creditors regarding your bankruptcy filing, a bankruptcy trustee will discharge your case and you will receive your discharge papers within a few weeks. Creditors and collections agencies will never call you again for any debt discharged in your bankruptcy case.

Go Over Your Options with an Experienced Bankruptcy Attorney

Filing for bankruptcy is never an easy decision to make. Because of the stigma that has surrounded filing for bankruptcy for so long, most people refuse to accept that filing for bankruptcy can actually benefit them. Some people, however, may not be good candidates for filing bankruptcy and would be better off using another debt elimination plan. Speaking with an experienced attorney is by far the best way to determine what option would be best for your particular situation.