Bill collectors can use aggressive techniques that put debtors under undue stress. However, there is no need to continue to deal with the daily menace of bill collectors’ phone calls or manipulation techniques. It is possible to put a fast stop to this harassment from bill collectors in San Antonio by taking the initiative and filing bankruptcy.
Filing bankruptcy means that you and your property are subject to the ‘automatic stay’ that is activated on the day you file. The automatic stay means that the harassment creditors subject debtors to should come to an immediate stop. Once you supply the bankruptcy court with a full list of creditors, the court will send out notification of the bankruptcy case filing. At this point, creditors cannot legally continue to attempt to recover property or money.
As it may take a few weeks for all creditors to receive the official bankruptcy notification, you can act proactively and inform creditors of the bankruptcy action you have taken. In fact, depending on how far bill collecting actions have proceeded, for example if a law suit is pending, it is sometimes advisable to inform creditors as soon as filing is complete. In this type of situation, depending on the severity of your situation, it may be beneficial to engage legal support.
As San Antonio offers debtors protection under both federal and state law, once creditors have been informed, they are obliged to cease bill collection activities. Having filed, you are entitled to legal protection and a persistent creditor could be censured by the court. There is also the possibility of legal costs being incurred on the part of the creditor due to this type of persistent debt recovery activity.
Many people fear filing bankruptcy, but bankruptcy does not mean that you will lose your property, as many people assume. In fact, if you act in a timely fashion when you are in serious financial difficulties, it is the best means of protecting yourself and your property from creditors and ensuring much of it is retained. Procrastination is not advisable when relief and protection is readily available.
Bankruptcy can be divided into two main approaches, liquidation or reorganization. Chapter 7 works for people who have substantial amounts of consumer and/or medical debts that are beyond their means to sustain. Typically, a debtor in a chapter 7 bankruptcy case has credit card debt and interest charges that are simply not manageable.
Unsecured debts, such as most credit card debts, are able to be discharged. A chapter 7 discharge means that you are no longer responsible for that debt. Therefore, the creditor cannot make attempts to collect property or payment related to the discharged debt from you now or in the future.
A further possibility to stop bill collectors is to file bankruptcy under chapter 13. This is a reorganization approach that suits people with regular incomes capable of recovering control of their finances through a combination of discharge and adhering to a court approved repayment plan. You may need to seek advice from a San Antonio attorney when deciding which approach to take.