Yes. 11 U.S.C. 362 requires creditors to immediately stop harassing you upon your filing of a bankruptcy petition. This same code section also generally stops garnishments, writs of attachments, sheriff sales of homes, foreclosure, lawsuits, and repossessions of vehicles. There are some instances where bankruptcy will only temporarily stop collection efforts, or will not stop them at all, if prior bankruptcies were filed too recently (see your attorney for details).

From the time you file a bankruptcy case, no one can contact you for any reason regarding your debts, and it is a violation of the bankruptcy law for them to do so.

Yes, they will! By law, all actions against a debtor must cease once the documents are filed. Creditors cannot initiate or continue any lawsuits, wage garnishees, or even telephone calls demanding payments. Secured creditors such as banks holding, for example, a lien on a car, will get the stay lifted if you cannot make payments.

Your creditors will be happy to deal with our staff, and will stop all collection calls as long as you stick with your Debt Management Program.

Once the bankruptcy case is filed, creditors are barred from contacting you for collection purposes. This is referred to as the "automatic stay" which is very powerful and is designed to put an immediate stop to all collection activity.

Yes. Debts that can be discharged in bankruptcy such as credit card and medical obligations, should not be paid once an informed decision is made to file a Chapter 7 petition. Monthly bills such as rent, mortgage payments, telephone, and utilities, however, still must be paid.

Creditors are required by the operation of the automatic stay provisions of Bankruptcy Code Section 362(a) to immediately cease attempting to collect on all obligations once a bankruptcy petition is filed.

Should it be determined that you are a candidate for bankruptcy, a bankruptcy can be filed and your creditors will be notified and by law, they cannot contact you during the pendency of your bankruptcy.

Upon assignment of your creditor claims, through a Power of Attorney, American Finasco will contact each creditor or their representative and advise them of our involvement. The creditors then understand they must work through American Finasco for resolution of the debt.

Practically, since collectors are paid commissions on what they collect and since they have no power to collect after you file bankruptcy, most collectors will stop calling you. If you do get a call, it is important that you make sure that the Trustee has been advised of that creditor. Remember you have nine months to list your creditors and if you forget a creditor that creditor will be entitled to receive the same distribution that your other creditors receive.

Creditors must prove the amount they are owed by you to be entitled to receive their share of any distribution in your Bankruptcy. Creditors write off the balance of your account.

The Clerk's Office is prohibited by federal statute from providing legal advice. If you have any questions on how a bankruptcy filing affects enforcement of an eviction proceeding, please contact your local constable’s office, county sheriff’s office, or your legal advisor.

YES! One of the major and most immediate benefits of filing bankruptcy is the protection of the automatic stay that goes into effect once a bankruptcy is filed to protect the debtor and his or her property. The automatic stay, stays or stops all creditor actions to collect a debt, including phone calls and foreclosures.

When you file bankruptcy, something called an "automatic stay" goes into effect. After you file, the court notifies all creditors listed in your schedules. This stops virtually all creditors from taking action to collect the debts you owe them unless the bankruptcy court lifts the stay and lets the creditor proceed with collections. Avoid bankruptcy by reducing your debt. Apply for a free debt counseling consultation from a Personal Debt Consultant.