Will my creditors stop calling if I file bankruptcy?

Yes. One of the great benefits of bankruptcy is that once your case is filed,  all your creditors must cease all harassment and collection activities – including phone calls, letters, lawsuits, garnishments, evictions, and foreclosures. This bar is called the automatic stay and is designed to give you breathing room while you work through the bankruptcy process. There are very serious consequences for creditors who violate the automatic stay. If a creditor contacts you, repossesses your car, or forecloses on your property without the court’s permission, they are considered to be in contempt of court and you may be able to recover actual damages that result (including attorneys’ fees paid to enforce the stay). Any action taken in violation of the stay is void.  So if your lender sells your house at a foreclosure sale while the stay is in place, the sale is void- even if the creditor had no notice of the stay.

Once a debt is discharged in the bankruptcy, the creditor will not be able to come after you for repayment even after the automatic stay is lifted upon conclusion of the bankruptcy because you will no longer owe the debt.

Violations of the automatic stay are common. An experienced bankruptcy lawyer can help you enforce your rights under the automatic stay.

Weitz Law Firm, PLLC
520 Kirkland Way, Ste 103
Kirkland, WA 98033