While the primary reason to file bankruptcy is to help you get out of debt, people also assume it will give them a break from their creditors. While this is partly true, it doesn’t mean your creditors can’t continue harassing you in the future. Here is an overview of how filing bankruptcy will affect the harassing calls and messages you receive from your creditors.

Will Filing for Bankruptcy Stop the Harassing Phone Calls?

As soon as you file for bankruptcy, an automatic stay is enacted on your behalf. This means your creditors are prevented from making any attempts to contact you about your debts. Specifically, your creditors may not do any of the following:

• Call you
• Contact you via letters, emails, or text messages
• Repossess any assets you put up as collateral
• Foreclose upon your real estate
• Pursue a lawsuit against you
• Put a lien on your assets

If these actions aren’t immediately stopped, it may take some time for the notice to reach certain creditors. However, if the harassment continues, you may have to report the incidences to your attorney. Either your attorney will contact those creditors directly, or they may ask for court intervention to ensure those creditors comply with the bankruptcy notice.

When May Creditors Continue to Pursue You for the Debts Owed to Them?

The automatic stay is only in effect for as long as it takes to process the petition for bankruptcy. That temporary stay becomes a permanent injunction once the bankruptcy has been discharged. According to 11 U.S.C. § 524, the temporary stay is converted to the permanent injunction that prevents creditors from resuming collection tactics.

However, if the bankruptcy is dismissed instead of discharged, the permanent injunction is not enacted. A dismissal means that the court has stopped processing the bankruptcy for any number of reasons. Typically, a dismissal may be issued if the applicant fails to complete paperwork properly, misses a deadline, or doesn’t submit the requested documents to the court. A lawyer can help you meet these obligations, so you can avoid a dismissal of your bankruptcy.

Pearce Law Firm helps people throughout Foley, AL, in need of a bankruptcy attorney. Additionally, the firm handles criminal defense and DUI defense, providing a hassle-free environment for individuals to discuss their case privately. To learn more about how they can help you file for bankruptcy, visit their website or call (251) 971-2676.