Many people with large amounts of debt face financial difficulties. Debtors are expected to make regular payments toward their debts. If payments are not made on time, debt collectors may start reaching out to debtors. Debt collectors may start calling or sending letters to debtors asking them to make large payments to resolve their debts.
Debt collectors can create a lot of stress for individuals. Filing for bankruptcy may offer a way to remove much of that stress. Nevertheless, some individuals may worry that debt collectors will continue to contact them even after they file for Chapter 7 bankruptcy. Bankruptcy can protect debtors from debt collector harassment. Here is what you should know:
Your protective rights after filing Chapter 7 bankruptcy
Debt collectors are generally not allowed to harass debtors. This means that debt collectors cannot threaten debtors, lie, contact others or businesses about the debts or force their way into a debtor’s home. Debt collectors can still contact debtors by phone or through email and potentially sue a debtor.
Chapter 7 bankruptcy protects debtors from being contacted by debt collectors. Once an individual successfully files Chapter 7 bankruptcy, an automatic stay goes into effect. An automatic stay notifies debt collectors of the bankruptcy filing, stopping any forms of contact.
An automatic stay typically also means that foreclosures or repossessions are halted. Once debts are discharged through Chapter 7 bankruptcy, debt collectors cannot collect on any of the discharged debts.
Chapter 7 bankruptcy offers many benefits to debtors. Professional legal guidance can help individuals explore their options to resolve debts and stop debt collectors from reaching out to them.