The phone calls from collection agencies start promptly at 8:00 am. They call you multiple times during the day; on your cell, at work, and at home. They leave you messages ranging from the simplistic automated calls that say “please call us back for an important message” to the intimidating messages demanding payment. These calls often leave people scared and confused and some go through great lengths to avoid these calls by changing their phone numbers and blocking the calls. However, avoiding these calls will not make the creditors go away. In some cases, bigger collection firms will have the ability to take you to court for these debts, all while incurring greater interest charges and now legal fees. A simple credit card debt that was $300 could multiply 5-10 times after a judgment is entered.
Wouldn’t it be nice to not have to avoid these calls and live in peace? During the bankruptcy process, there is something called the “automatic stay”. What this essentially means is that once you file, creditors may not contact you to demand payment or attempt to collect any debt from you while your case is active. When you file, you will notice that a majority of the calls will stop within a week of filing. As long as you provide any and all information for your creditors to your Bankruptcy Attorney to include in your case, these creditors are notified through the courts at the time of filing.
Other benefits of the automatic stay include stopping wage garnishments and pausing foreclosure proceedings. Keep in mind that although foreclosure proceedings are stopped temporarily, this does not mean that the case is gone for good. Your mortgage company may ask for permission to continue
with the foreclosure case through a motion filed in bankruptcy court while your case is still active. If for some reason they don’t, they are automatically granted permission to continue once your bankruptcy case is discharged. On the other hand, wage garnishments are stopped completely and for good once you
receive a discharge. In the meantime, they should not garnish your wages or accounts while your bankruptcy case is pending.
If you are interested in a free consultation to discuss filing for Chapter 7 or Chapter 13 bankruptcy and regaining some peace back in your life, contact Attorney Alberto H. Hernandez at 305-820-0334 to schedule a free consultation at one of our offices conveniently located in Miami Lakes or Pembroke Pines.