Stop Creditor Phone Calls

Stay Away Creditors and the "Automatic Stay".

When someone files bankruptcy the individual is protected from creditors by the court's "automatic stay" pursuant to 11 U.S.C. 362.  Stay also means stop.  What this means to the individual is that collection actions such as wage garnishments, annoying phone calls, and letters must stop.  Also, it can provide a temporary halt to foreclosure and evictions.  

The automatic stay will stop tax levies and garnishments, but won't stop tax proceedings such as audits, tax assessments, and demand for tax returns.  Less common actions for most people that won't be stopped by the automatic stay are criminal proceedings and support actions.  In some cases, the creditor can file a special motion for relief from stay with the court to "lift" the stay and to resume collections.

Yet, for most people seeking bankruptcy the automatic stay is a refreshing change as it will stop the day to day harassment from creditors. 

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The information on this website is not intended as legal advice, does not imply an attorney client relationship, and you should consult with a professional or attorney regarding the details of your own personal facts and financial situation. Further the information is not warranted to be complete, accurate, or current.