Bankruptcy is a powerful tool, and one of the most powerful feature of bankruptcy is that it stops most debt collection process. Our law office can also help in this regard. The screaming debt collectors, invading and intruding in your privacy all the times, early and late evenings, can stop this non sense altogether. Once you file your bankruptcy, all collection must cease immediately. Intrinsic with each bankruptcy is an automatic stay which is the draconian power of bankruptcy laws of US. First of all, I like to tell you that you really don’t need bankruptcy to stop collection. You don’t need bankruptcy unless you really need it. There are other ways to stop these debt collectors from calling you. I would write another post with a sample letter to stop this debt collections. Federal law prohibits this debt collection practices in many ways. First of all, you simply tell the debt collector orally to stop it. If they don’t listen (which generally they don’t) send them a letter telling them to stop all this communication. I am going to post a sample letter very soon.
Every bankruptcy includes an automatic stay which goes into effect very soon after filing the bankruptcy. This stay is effective, and the creditors if they are desperate or justified can file “Motion to Lift Stay”. Again, that is time and money consuming thing.
What Can Be Stopped?
1. Credit Card Debts
2. Attorney Fees
3. All unsecured debts
4. Medical payments
5. Landlord tenant proceedings
6. Tax proceedings
7. Payday loans
8. Foreclosures
9. Utilities
As we stated earlier, the basic purpose of the stay is to protect the debtor and his or her property. The automatic stay is one of the fundamental debtor protection provided by the bankruptcy laws. It gives the debtor a breathing spell from his creditors. It stops all collection efforts, all harassment, and all foreclosure actions. it permits the debtor to attempt a repayment or reorganizations, or simply to be relieved of the financial pressures that drove him into bankruptcy. The stay also permits the bankrupty court to deal with all aspects of debtor’s situation in an orderly manner. It prevents parties from interfering or compelling the bankruptcy process.
How Long this Stay Last?
Theoretically, a stay last for 30 days. The court can end it earlier and even give it longer than 30 days. Sometime it can last the duration of the case. If a case is dismissed, and a new case filing is appropriate, a new automatic stay comes into effect. The subsequent filings should be conducted in good faith.
Las Vegas Bankruptcy Attorney 