Will Bankruptcy Stop the Creditor Calls?

People all over Arizona are experiencing financial problems that seemingly offer no way out. Stress is mounting, bills are piling up and perhaps worst of all – the phone is ringing off the hook. On the other line are creditors whose job is to pursue their debtors in an effort to collect what they owe. It doesn’t matter that if you had the money, you would pay off your debt – what matters is their efforts will produce at least partial payments from some once in awhile. If you have become accustomed to having your heart stop every time your phone rings, you need to enlist the help of an Phoenix, AZ bankruptcy lawyer. Bankruptcy may be an option for you to get out from under your debt, and below is a brief look at one of the immediate benefits of filing for bankruptcy protection – the end of the creditor calls.

The Automatic Stay – How an Arizona Bankruptcy Lawyer Can Help You Get There

When someone files for bankruptcy protection, he or she needs to carefully put together schedules and statements that present a clear and accurate picture of the debtor’s overall financial situation. This is critical for many reasons, and every existing creditor involved needs to be included on these documents. If these documents are done properly and accepted by the Bankruptcy Court, one of the first steps that the court takes is to issue what’s commonly known as an Automatic Stay to all the creditors listed in the bankruptcy petition.

How the Automatic Stay Works

If the Bankruptcy Court issues an Automatic Stay on behalf of the debtor who’s filing for bankruptcy protection, this means that those creditors who are actively attempting to collect on debts owed by the debtor must stop doing so immediately. In effect, the Automatic Stay is an injunction against continued collection efforts, and since it comes from a court, it is given the same weight and authority as any valid court order. Creditors could face substantial penalties if they ignore this order and continue to attempt to collect debts.

This does not mean that the creditors’ rights are removed when an Automatic Stay is issued. Instead, creditors have the option of appearing at any hearings related to the bankruptcy case at hand and can move for the stay to be lifted if they prove that the debts incurred were fraudulent. However, this cannot happen without a full hearing on the motion and without a full body of evidence that’s presented to the Bankruptcy Court. Basically, the Automatic Stay allows time for the bankruptcy case to continue to its conclusion, at which time the debtor’s debts will be handled in a certain way depending on the nature of the bankruptcy filing.

If you have had enough and would simply like to take steps to put an end to calls from creditors, all you need to do is contact the Arizona bankruptcy lawyers at the law firm of Montano Arentz & Associates, PLLCtoday to schedule an initial consultation. It’s time you obtained the answers you need to begin the process of putting your financial problems behind you once and for all.