If you recently lost your job or incurred massive medical expenses and cannot pay your bills, you’re probably getting constant phone calls, emails, and mail from your creditors. Filing for bankruptcy might be the best answer to this tough situation. Not only can bankruptcy wipe out or restructure your debt, but it also triggers an “automatic stay” to stop creditors from harassing you. If you’re ready to learn more, it’s time to contact a knowledgeable attorney to handle your Salt Lake City bankruptcy case and ease your stress.

How Creditors Collect Debts Before a Bankruptcy Petition

As long as creditors comply with the Federal Fair Debt Collection Practices Act, they can contact you to collect a debt. By law, they cannot call at odd hours, intimidate, or berate you. They also cannot make false representations about your debts. Creditors often threaten with:

Utah provides guidelines for debt collection as well as the rights you have to defend yourself. However, if you struggle with understanding the state guidelines, it’s well worth consulting with an experienced attorney in Salt Lake City to handle every step of your bankruptcy case.

How Does the Automatic Stay Work in Salt Lake City Bankruptcy Cases?

If you decide to file personal bankruptcy, it will probably be under Chapter 7 or Chapter 13, although other chapters are available in some cases. Chapter 7 is liquidation bankruptcy because assets are sold to pay creditors. Chapter 13 involves a renegotiation and restructuring of debt. Once bankruptcy is filed, an automatic stay stops creditors’ collection actions.

The court will notify creditors that they must stop all actions against you while your case is active. Creditors can’t call, email, or send threatening letters. An automatic stay halts all lawsuits, foreclosures, liens, or wage garnishments as your bankruptcy case moves through the legal system.

If you are contacted by a creditor, give them your bankruptcy case number and date filed and refer them to your attorney, especially if they aren’t honoring the automatic stay. If the harassment continues, your lawyer can petition the courts to sanction the creditor.

A Salt Lake City Attorney Can Explain the Role of the Automatic Stay in Bankruptcy Case

If you are experiencing creditor harassment and cannot pay your debts, you should consider filing for bankruptcy to receive the protection of an automatic stay. Bankruptcy laws are meant to offer a new start, and the first benefit is relief from creditors.

An experienced attorney can explain the important role of an automatic stay in Salt Lake City bankruptcy cases during your initial consultation. Call today to learn more about we could help you regain your financial stability.

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