Bankruptcy Help for Business and Individuals

Stop Foreclosure & Wage Garnishments

by | Nov 19, 2019

Stop Harrassing Phone Calls & Letters

Once a person falls behind on debt payments, creditors and repossession agencies can become extremely aggressive. Repeated phone calls, numerous automated messages, and a string of letters in the mail can make an already difficult situation feel overwhelming. Learn how a skilled bankruptcy attorney at Hallstrom, Klein & Ward LLP can help you put an end to creditor harassment so you can get a much-needed break from the pressure caused by debt collectors.

Automatic Stay

Once your bankruptcy is filed, the law automatically requires all creditors to stop all collection actions. This is known as the “automatic stay.” Creditors are no longer allowed to contact you and attempt to collect any of the money you owe. This stay also stops foreclosure proceedings on your home so that you can have time to determine how to handle the problem of your mortgage. The stay gives you some quiet time to explore various solutions with your bankruptcy attorney.

Prohibited Acts During Automatic Stay

The automatic stay prohibits all creditor harassment and collection actions, including:

  • Law suits
  • Collection Calls
  • Foreclosure Sales
  • Wage Garnishments
  • Levies on bank accounts and other property

The automatic stay remains in effect until a judge lifts the stay after a court hearing where the creditor must prove an adequate reason why the stay should be lifted, or until after the property is no longer part of the bankruptcy estate. When the debtor’s bankruptcy is discharged, the automatic stay becomes a permanent injunction prohibiting creditors from all collection efforts on the discharged debts.

Automatic Stay Does Not Stop:

  • Criminal proceedings
  • Actions regarding a family support order
  • Collection actions for property that is not part of the bankruptcy estate
  • Tax audits; however, the collection efforts from the government for taxes owed is still stayed

What If My Creditor Ignores the Automatic Stay?

Anyone who willfully violates the stay is liable for actual damages caused by the violation, and possibly punitive damages. The court automatically mails out a notice of your bankruptcy to your creditors; however, it may take a few days for your creditors to receive this notice in the mail. Consequently, it is important for you or your bankruptcy attorney to immediately notify your creditors who may be planning on taking some action, such as a foreclosure sale. Regardless of creditor acts, most actions taken after the stay is in place are generally void and have no legal effect. However, you should immediately notify your bankruptcy lawyer if a creditor continues to send harassing letters, calls you, or threatens repossession.

Contact an Experienced Bankruptcy Lawyer

Call (949) 450-8500 for your FREE consultation.

I wish I have the right words to describe my exceptional experience with Grant Hallstrom and his incredible team. When time comes to count on someone reliable to understand your situation and help you going through challenges, Grant is the best ally.

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