As soon as you file for bankruptcy, an automatic stay is put in place that prevents your creditors from collecting on your debts – which means that the harassing phone calls will stop.
The automatic stay is essentially a temporary injunction. It halts creditors from taking any further action to collect the debts you owe them for as long as your bankruptcy case is pending.
An automatic stay gives the debtor some breathing room. While the stay is in place, collectors cannot call you and all foreclosure, repossession and wage garnishment actions are stopped. The stay basically freezes the debt collection activities, giving you time to proceed with your bankruptcy filing and get your finances back in order.
Note, however, that a creditor can petition the court to be granted relief from the stay. In order to be granted this relief, the creditor must make a showing that the stay does not give them adequate protection or that their interest in a certain piece of property will be in jeopardy.
To receive free legal advice on Texas bankruptcy, including your protections under the automatic stay, contact Fears | Nachawati today. Simply email us or phone us toll free at 1.866.705.7584 to receive free legal assistance from a Texas bankruptcy lawyer.