Dealing with relentless phone calls from creditors can be a source of immeasurable stress and unrest. Suppose you’re overwhelmed by debt and receiving frequent, sometimes aggressive calls demanding payment. In that case, you might wonder if filing for bankruptcy could put an end to the harassment.
Yes — bankruptcy can legally stop most creditor phone calls. However, understanding how and when this protection applies is crucial if you’re considering bankruptcy as a solution to debt-related harassment.
The automatic stay
When you explore debt relief solutions, one of the most powerful tools that immediately comes into effect is the automatic stay. This court order halts most debt collection efforts, including phone calls, lawsuits, wage garnishments and letters from creditors.
The automatic stay means creditors must immediately cease all communication with you regarding debts included in your bankruptcy case.
How effective is bankruptcy at stopping harassing calls?
Once you file, the creditor harassment should stop almost immediately. Creditors who ignore the automatic stay risk facing serious consequences, including fines or sanctions from the bankruptcy court. It’s important to remember that the stay applies only to debts listed in your bankruptcy petition. If a creditor is pursuing a debt not included in the bankruptcy, they may still contact you.
Additionally, certain types of debts are exempt from discharge, meaning they remain your responsibility after bankruptcy. The bankruptcy stay does not necessarily stop creditors’ collection efforts for these debts.
What to do if creditors continue to harass you after filing
If you continue to receive harassing calls after filing bankruptcy, document every instance carefully. In some cases, courts impose monetary penalties on creditors who willfully violate the stay.
If harassing phone calls are part of your debt struggle, enlisting dedicated legal guidance is a wise first step. This can help ensure you understand your rights, get help filing for bankruptcy and enforce the protections bankruptcy offers.
