The Automatic Stay Stops Creditor Calls
One of the most important provisions of the Bankruptcy Code, the automatic stay protects debtors by preventing creditors from taking actions intended to ensure repayment. Whether you owe your creditors hundreds of dollars or hundreds of thousands, the automatic stay can stop creditor phone calls in their tracks, giving you and your family much needed peace of mind.
Section 362 of the Bankruptcy Code stops entities from commencing or continuing legal actions, enforcing judgments, creating or perfecting liens, or collecting claims against your assets. Known as the big stop sign by many bankruptcy attorneys, the automatic stay is one of the principal reasons that Chapter 7, Chapter 11, and Chapter 13 debtors declare bankruptcy. In the midst of insolvency, a time that is often remarkably stressful, the automatic stay provides a much-needed shield against creditor claims.
Federal law such as the Bankruptcy Code and the Federal Debt Collection Practices Act (FDCPA) as well as state laws such as the Texas Deceptive Trade Practices Act (DTPA) prohibit or limit creditors from harassing consumers. If you’ve been harassed in violation of the automatic stay or alternative federal or state laws, you may have a viable claim against your creditors, giving you an all important bargain chip as you face restructuring.
Bankruptcy is a difficult time for many debtors and their families. You not only need sound legal advice, but sound financial advice, too. Are you ready to speak with experienced, expert professionals who know how to advance your rights and protect your assets? The attorneys at Fears Nachawati are ready to help you. For your free consultation, contact us today. With years of experience, we know how to help you.