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Halting creditor contact with an automatic stay

On Behalf of | Sep 28, 2018 | Firm News |

You face frequent communication from badgering creditors. They call you on your cell phone on your way to work, when you spend time with your family and even while you grocery shop. The contact makes you nervous, as you know you owe substantial debt, and you just wish to have relief from the daily reminders of your owed money.

By filing bankruptcy in Colorado, you can avoid creditor contact. No mailings or telephone calls may take place after you begin the process, and you can begin a plan to pay back your owed money. Bankruptcy is so often viewed as a negative action, but the process provides relief for so many individuals and families, and it can offer a fresh start to your life and finances. If you head toward bankruptcy, it is important that you seek the expertise of a bankruptcy attorney, so that you can file all necessary documents timely and avoid illegal creditor contact during the process.

Automatic stays and filing bankruptcy

In Colorado, when you choose to file bankruptcy and begin the process with the state, an event called the “automatic stay” takes place. An automatic stay halts all creditor communication with you. Because you began the bankruptcy process, this indicated your intent to create a plan to payback creditors. Therefore, further contact from creditors is both illegal and unnecessary.

Once the automatic stay is enacted in your case, it usually lasts until your bankruptcy is fully complete – when debts are discharged and others are paid.

Some creditors have the ability to relieve an automatic stay during your bankruptcy if you do not make the payments set it your bankruptcy plan. Unfortunately, creditors have the ability to remove the automatic stay by filing a motion with the court, so you want to ensure that when you file bankruptcy, you do so willing to begin paying back creditors.

Filing bankruptcy does not have to depict the demise of your financial health. The process involves lifting your debt and paying back as much as possible, but the automatic stay gives you immediate relief from the constant creditor contact you may face. Bankruptcy attorneys can guide you through bankruptcy proceedings and help ensure that you do not face illegal contact from creditors.

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