If your debt has spiraled out of control, you're likely facing collection action from one or more creditors. The incessant phone calls, the registered letters, the legal affidavits—it can quite quickly become too much. While the decision to file Chapter 7 or Chapter 13 bankruptcy is never an easy one, it can provide some relief from the bombardment and aggressive tactics of collection agencies. There are a few things to understand about bankruptcy and collection; below, each type of consumer bankruptcy is discussed, as well as how each can stop collection actions.

Chapter 7 Bankruptcy

Filing for Chapter 7 bankruptcy will eliminate most of your unsecured debt. As soon as you file with the courts, an automatic stay is issued. This stay can be a lifesaver when dealing with collection agencies: all collections actions against you must stop, and you have the full protection of the Chapter 7 bankruptcy laws. The stay, however, is not a permanent solution. Utility disconnections, evictions, and foreclosure are usually only granted a temporary stay while you and your bankruptcy attorney design a financial strategy.

Chapter 13 Bankruptcy

When you file for Chapter 13 bankruptcy, your debts are not entirely eliminated. Instead, they are restructured into a repayment plan that is more feasible for your current financial situation. Like Chapter 7, a Chapter 13 bankruptcy automatically issues a stay that puts a temporary halt on collections actions. For those going through a home foreclosure, Chapter 13 is usually a more effective way to hang onto your house since what you owe is not wiped away but restructured. Your bankruptcy attorney will work with you to determine which type of bankruptcy is best for your case.

To schedule a consultation with a bankruptcy attorney in Rochester, NY, call John D. Wieser Esq., P.C. at (585) 328-0660. You can also visit his firm on Facebook and Twitter to keep current on relevant news and information. By filing for bankruptcy, you can take advantage of an automatic stay that puts an end to collection harassment.