Understandably, being in debt may be a stressful situation. But what makes it worse is when creditors harass you for their dues. Rest assured, there is a way to put a stop to this. Continue reading to learn how bankruptcy can stop creditor harassment and how an experienced Louisville, Kentucky consumer bankruptcy lawyer at Schwartz Bankruptcy Law Center can serve as your protector.

What is creditor harassment?

Simply put, creditor harassment may occur if you are behind on your payments in any way. Examples of how you may be harassed by creditors are as follows:

  • Creditors may spam you with phone calls, sometimes not disclosing who they are.
  • Creditors incessantly send letters to your residential home.
  • Creditors use profanity or threats when speaking with you.

What is a meeting of creditors?

Unfortunately, before you even file your bankruptcy paperwork, you may need to attend a meeting of creditors, otherwise known as a Section 341 meeting. Rest assured, this meeting will take place in a controlled environment under the supervision of a representative from the bankruptcy court.

Here, you will be able to explain your current financial situation with your creditors, along with why you have been unable to keep up with your payments. In addition, you will have to outline your reorganization plan for your finances and how you intend to pay off your debts.

Importantly, this reorganization plan must be approved by the bankruptcy court, where a judge will decide whether you can move forward in the bankruptcy process. This usually takes 45 days or less.

In what ways can bankruptcy stop creditor harassment?

Once you get over the hurdle of a meeting of creditors, you will be relieved of creditor harassment. This is because, as soon as you file your bankruptcy paperwork, the court will enact an automatic stay. Specifically, an automatic stay orders that creditors cease their collection activities, which may include the following:

  • Creditors must stop spamming you with collection calls.
  • Creditors must stop sending you collection letters.
  • Creditors must stop the restraints on your bank accounts.
  • Creditors must stop the repossession of your assets.
  • Creditors must stop filing lawsuits against you.

This automatic stay will last for a different amount of time depending on whether you file for Chapter 7 bankruptcy or Chapter 13 bankruptcy. That is, the duration will be three to four months for Chapter 7 and three to five years for Chapter 13. The reasoning is that the automatic stay will last as long as your repayment plan lasts in your Chapter 13 bankruptcy, so long as you continue to comply with its terms.

For more information on how you can stop creditor harassment, reach out to a skilled Louisville, Kentucky consumer bankruptcy lawyer today. We look forward to hearing from you.