Harassed by Creditors? How Bankruptcy Can Protect You!

We all the old song and dance: a number you don’t recognize pops up on your phone and you stare at it debating if you should answer. It could be a friend or family member with a new number you haven’t saved yet. More likely, it’s an unsolicited caller attempting to sell you a product or service. For people living with credit debt, those calls can be frustrating and cause anxiety. Having creditors hound you for funds you don’t have keeps you in a cycle of financial stress that seems impossible to escape.  

Creditors call at any time of the day, using shady tactics to get you to answer and to keep you on the phone. These agents make false claims and threats to try and force your hand to collect on debts. Harassing calls can make you hesitant to answer the phone, causing you to miss important information or job opportunities.  

Stop the harassment and reclaim control of your life now. Here’s how filing bankruptcy can help. 

What is Bankruptcy? 

The word bankruptcy strikes fear in many people, yet most don’t actually understand what it is. Bankruptcy is a means of consolidating and eliminating debt through a legal agreement with your creditors. Depending on the type of bankruptcy filed, a bankruptcy law firm in Delray Beach can help you find a solution to your specific situation. 

The most common forms of bankruptcy are Chapter 7 and Chapter 13 bankruptcies.  

Chapter 7: liquidation of assets to eliminate unsecured debts. Chapter 7 bankruptcies are used for businesses, couples, and individuals who qualify under state specific guidelines.  

Chapter 13: development of a repayment plan spanning three to five years. Chapter 13 bankruptcies allow people with a steady monthly income to eliminate debts through repayment. With manageable monthly payments and a structured repayment plan, this form of debt solution in Delray Beach is the most common.  

How Bankruptcy Ends Harassment 

Filing for bankruptcy provides certain legal protections that help to prevent creditors from going after you in certain ways. Once bankruptcy is filed, creditors must go through the proper legal channels to settle their debts.  

Bankruptcy filing protects you against: 

Property Liens: Debts owed on home or car loans can give creditors the ability to place a lien on that property. A lien means you cannot sell or trade said property until the debt you owe is settled. Through bankruptcy filing, your creditor cannot prevent the transfer of ownership of the property. This is especially important for asset liquidation used toward elimination of debt.  

Foreclosure: As with property liens, foreclosure is an action taken against your property in an attempt to collect on a debt. Foreclosure is an attempt for a home loan provider to take ownership in order to settle mortgage debt. Bankruptcy filings prevent foreclosure proceedings to keep you and your property protected. 

Eviction: Because bankruptcy filing prevents foreclosure, it also protects against eviction from your property, keeping you and your family in your home. A bankruptcy law firm in Delray Beach like the Law Offices of John E. Mufson can guide you through this process.  

Repossession: In the same way that bankruptcy prevents foreclosure and eviction, it protects against repossession of motor vehicles and other collateral property.  

Harassing Phone Calls: Legally, once bankruptcy has been filed and proceedings begin, your creditors can no longer contact you in an effort to collect those debts. Doing so is in violation of the law and carries heavy fines. If the calls continue, gather as much information as you can including specifics of when and who the caller represents. Bring this information to a bankruptcy law firm in Delray Beach so they can ensure your rights are honored. 

If you are getting harassed by creditors and considering filing for bankruptcy, contact the Law Offices of John E. Mufson now.