While no one really wants to file for bankruptcy, sometimes it’s something that cannot be avoided. When someone gets to the point that filing bankruptcy is in their future, they are usually buried under a mountain of debt and getting bombarded with phone calls from creditors. Creditors he stays to become so aggressive and are relentless in their attacks to collect money. When the phone calls start, people feel burdened with stress and feel like they’re carrying the weight of the world on their shoulders. Many people go into depression and don’t know what to do to get out. That’s where a bankruptcy filing will stop all the craziness. Filing Chapter 7 bankruptcy is king when it comes to eliminating a large amount of unsecured debt. Unsecured debt is defined as any debt that is not secured by a piece of property. Medical bills, credit cards, personal loans and payday loans all forms of unsecured debt.

When the bankruptcy attorney files a bankruptcy petition an automatic stay is put in place stopping all collection activity against the debtor. The automatic stay is so powerful it also stops all legal activity including foreclosure, lawsuits and wage garnishments. As soon as the creditors are notified, all phone calls must stop. If a creditor continues to call and harass the debtor they will be in violation of the automatic stay. Nowadays, there are some creditors that are usually those who bought the debt for pennies on the dollar who don’t give up. These debt collectors are relentless in their attacks and the only way to stop them is to have the bankruptcy attorney send them a letter. If they still continue the Bankruptcy Attorney can file a motion with the court to get sanctions against this creditor and depending on how flagrant a violation that debtor can ask for damages and legal fees. Most creditors won’t allow it to get this far, but in today’s economy nothing surprises me.

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