If you are being harassed by creditors bankruptcy can provide an immediate answer for how to stop collection calls. Under bankruptcy law, as soon as a bankruptcy case is filed an automatic stay will go into effect. The stay requires creditors to stop collection calls and all collection activity against you immediately. Creditors and collection agencies will not be able to contact you, garnish your wages, or repossess your property while the automatic stay is in effect.
If a creditor continues to attempt to collect a debt while the stay is in effect you may be able to sue that creditor. In most Chapter 7 cases, the automatic stay will remain in effect until your bankruptcy case is discharged. The automatic stay is available under both Chapter 7 and Chapter 13 bankruptcy. If you are unsure about which Chapter is right for you to stop collection calls contact a bankruptcy law firm in Tampa.
How to Stop a Foreclosure Auction
The automatic stay will not just stop collection calls, it will also force a foreclosure auction to be cancelled. If there is a bankruptcy stay in place your mortgage lender will not be able to file a foreclosure law suit. If the lender already initiated a foreclosure lawsuit, the foreclosure action must be put on pause until the stay is no longer effect. Further, the automatic stay will even stop a foreclosure sale that has already been scheduled.
The stay should remain in effect until either the bankruptcy is discharged or the lender obtains an order from bankruptcy court granting them relief from the stay. However, if the Trustee abandons the property it will no longer be considered property of the bankruptcy estate, and thus not subject to the stay. In most cases, a mortgage lender will file petitions for relief from the stay. Therefore, it is important you have a seasoned Tampa bankruptcy lawyer at your side to help prevent the lender from obtaining relief from the stay.
Stop Collection Calls
The automatic stay does not stop collection calls from all creditors. Bankruptcy law provides for many exceptions from the automatic stay. A list of some of these exceptions are below, for a more complete list of exceptions See 11 USC §362 or contact a bankruptcy lawyer in Tampa.
- Child support
- suspension of a driver’s license
- Property that is not part of the bankruptcy estate
- an audit by a governmental unit to determine tax liability;
- criminal court proceedings
Bankruptcy Law Firm in Tampa
At Florida Law Advisers, P.A., our Tampa bankruptcy attorneys have years of experience helping people just like you to solve their financial problems and stop collection calls. We understand that these are very difficult times and are here to help. We have many options available that can help you successfully manage your debt and regain your financial health. The right course of action will depend on the unique circumstances of your case. To see which options may be available to you, contact us to today to schedule a free, confidential consultation with a Tampa bankruptcy lawyer at our firm.