If you are having difficulty paying your bills, that headache is only compounded by creditors who constantly call for payment. The immediate benefit to filing for bankruptcy is that those calls and letters must stop. Bankruptcy laws prohibit creditors from contacting you to seek payment. This breath of fresh air is what the bankruptcy laws intend to give by offering honest, but unfortunate debtors a fresh start.
The prohibition against contacting debtors in an attempt to collect is thanks to a provision of the Bankruptcy Code called the automatic stay. How it works is that the moment you file bankruptcy, the automatic stay takes effect. The automatic stay automatically stops (or stays) creditors from trying to collect debts. The automatic stay also stops pending litigation against you from proceeding. When a creditor disobeys this provision of bankruptcy law, they face penalties and fines for their violation.
The type of punishment the court administers against a creditor violating the automatic stay is usually in the form of payment of monetary damages. In addition, the creditor will be required to immediately cease its collection efforts against you. If you have filed bankruptcy and are still receiving calls and letters from creditors, it is vital you call your bankruptcy attorney immediately. In addition, you should:
If you are the victim of a violation of the automatic stay, call a Houston bankruptcy attorney for help. Stop the calls and letters once and for all and seek to punish creditors for their wrongful acts. You do have rights, even in bankruptcy, and you should seek to enforce those rights when they are overstepped by a zealous creditor.
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