Will Bankruptcy Stop the Harassing Phone Calls and Mail from Bill Collectors?
Posted on behalf of Phillips Law Group on Apr 30, 2010 in Local
Anyone who has encountered serious financial problems understands the stress-filled reality of such a situation - the phone rings all day with calls from bill collectors looking to squeeze whatever small amount of money they can out of an existing debt, the mail box is filled with threatening letters - it can easily become overwhelming. Harassment from creditors can ruin the quality of someone's life, and people who are inundated with these types of contacts just want them to stop. Fortunately, there is an alternative that can put a stop to the bill collectors. Filing for bankruptcy protection can ease the stress of this situation, but it's advisable to look into this possibility with the help of a Phoenix bankruptcy lawyer.
Short-term Benefits of an Arizona Bankruptcy
When someone files for bankruptcy protection, he or she puts together schedules of debts and assets along with a petition for relief from the court. When the bankruptcy court receives these documents and accepts them as valid, the court's job at that point is to open a bankruptcy case for that person or people. The opening of a bankruptcy case sets certain steps in motion. One of those initial steps taken by the court is to notify all of the creditors named on the debtor's petition that such a case has been filed along with issuing what's known as an Automatic Stay. The Automatic Stay is basically an injunction issued by the bankruptcy court against additional collection efforts while the case is ongoing. At this point, the calls and letters stop coming.
Long-term Benefits of an Arizona Bankruptcy
If everything goes as planned during the Arizona bankruptcy case, the court will either grant a discharge of the existing debts named on the petitions for the debtor if he or she files under Chapter 7 of the Bankruptcy Code or will activate a payment plan if the debtor files under Chapter 13. Regardless of the specific type of Arizona bankruptcy case filed, once it reaches this stage the debts are either wiped out by the discharge or they're placed in repayment mode under the terms of the payment plan accepted by the court and the creditors. This process allows the debtor to get out from under existing debt and to make progress towards a new financial start free from harassment and collection efforts.
However, this step should not be taken without a close analysis of your financial situation. If you are having financial problems, seek the advice of an experienced Phoenix bankruptcy lawyer to find out what steps are right for you. Contact the Phillips Law Group today to schedule an initial consultation.