Did you know that once you file for Bankruptcy your creditors and debt collectors have to immediately cease contact and collections activities or face sanctions from the Bankruptcy Court? This relief is felt as soon as you file for bankruptcy. In fact even if you have not filed yet and have taken the first step of retaining an attorney, many creditors will stop collections upon a verification call to your attorney.

As soon as your bankruptcy case is filed an Automatic Stay goes into effect which protects you from your creditors. This means that your creditors can not continue to collect your debts from you unless they follow the bankruptcy laws carefully. The automatic stay will also stall any action to recover the debtors property. The filing of the bankruptcy petition prompts the court to issue an order notifying your creditors of this stay, so if they are named in the petition they are officially on notice that collections activities need to stop. What does this mean for you? You can begin to breathe again and focus on rebuilding. 

The automatic stay not only stops the harassing phone calls and letters, it can also stall a foreclosure or vehicle repossession. The automatic stay gives you powerful protection. 

You are entitled to a fresh start under the bankruptcy code, the relief offered through the automatic stay is one of the most immediate forms of relief you will benefit from when filing bankruptcy. Call our office today at 315-255-3368 to set up your free consultation and see if bankruptcy is the right solution for you.

This blog does not provide legal advice and does not create an attorney-client relationship. If you need legal advice, please contact an attorney directly. 

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