When you file for bankruptcy, collections must halt. This is thanks to the automatic stay that kicks in when a debtor seeks bankruptcy protection.
While the bankruptcy itself is quite complex and complicated, there is no doubt about what an automatic stay means when bankruptcy protection is sought. Once you have filed, all of the creditors that you listed are told you have filed for bankruptcy via first class mail. This doesn’t mean the calls stop the day you file, as typically, it takes about seven-to-ten days before the phone calls will end completely.
If you do get calls from creditors, just give them the name and phone number of your Iowa bankruptcy lawyer. You may also want to provide creditors with your case number and ask that this information is noted on your file. If, for some reason or other, you are still getting phone calls and letters in the mail, call your lawyer and give him the creditor’s information. At this point, the attorney will send the creditor a “cease and desist” letter, which typically stops harassing creditors cold in their tracks.
It’s not unusual for creditors to still keep calling and sending mail, even at this point. If they do, they are in direct violation of your automatic stay and you need to contact your Iowa bankruptcy lawyer with a detailed log of all calls and letters. Your lawyer can then file stay violations against creditors who overstepped their bounds.
Filing for bankruptcy is not easy and the less stress you have to deal with, the better. You have a difficult journey ahead of you and many decisions to make about how to overcome your desperate financial situation. Some people feel enormous guilt over declaring bankruptcy, others feel it is their right and may have done it a time or two.
Declaring bankruptcy is not a shameful decision. It is often fueled by desperate necessity, by honest people who got into a financial bind and didn’t realize until it was too late, how deep they were in the hole. The most common sense approach to declaring bankruptcy is to speak to an experienced Iowa bankruptcy lawyer and find out what Chapter may apply in your situation. Chapter 7 is not for everyone. Chapter 13 isn’t for everyone either. It depends on the circumstances of your case.
Just because your friend or neighbor may have declared bankruptcy does not mean their case was the same as yours. No two cases are alike in detail. However, they are alike in process going through bankruptcy court. This is not something that an individual should try without the help of a skilled bankruptcy lawyer. There is too much at stake.