Can filing bankruptcy stop bill collectors from calling?

If you’re overwhelmed by relentless calls from bill collectors, you might be wondering, “Can filing for bankruptcy stop these calls?” The answer is a resounding yes. Filing for bankruptcy not only provides debt relief but also offers immediate legal protection against creditor harassment. At The Law Offices of Adam C. Gomerman, we’ve been helping Long Islanders put an end to creditor calls since 1991. Let’s explore how bankruptcy can bring you peace of mind and a fresh start.

The Short Answer: Yes, Bankruptcy Stops Bill Collectors from Calling

When you file for bankruptcy, a powerful legal protection called the automatic stay goes into effect. This court-ordered stay requires creditors to stop all collection activities, including phone calls, letters, wage garnishments, and lawsuits.

How the Automatic Stay Works

The automatic stay begins immediately after you file your bankruptcy petition. Once in effect, creditors are legally prohibited from contacting you to collect debts. This includes:

Phone Calls: Bill collectors must stop calling you, whether they’re contacting you at home, work, or on your mobile phone.
Letters and Emails: Collection agencies cannot send you letters, emails, or other forms of communication demanding payment.
Lawsuits and Wage Garnishments: Any ongoing legal actions, such as lawsuits or wage garnishments, are halted.
Foreclosure and Eviction: The automatic stay can temporarily pause foreclosure or eviction proceedings, depending on the circumstances.

If a creditor continues to contact you after the automatic stay is in place, they may be violating federal law.

Debts Protected by the Automatic Stay

The automatic stay applies to most types of debts, including:

Credit card balances
Medical bills
Personal loans
Utility bills
Payday loans

These debts are typically discharged or reorganized during the bankruptcy process, giving you long-term relief.

Exceptions to the Automatic Stay

While the automatic stay is broad, there are some exceptions where creditors can still take action:

Child Support and Alimony: Collection efforts for domestic support obligations are not affected by the automatic stay.
Criminal Fines: The stay does not stop actions related to criminal penalties.
Certain Tax Debts: The IRS can still audit you, issue tax assessments, or demand payment for certain tax obligations.
Secured Debts: Creditors with secured claims (e.g., a mortgage lender or car loan provider) may seek court permission to continue collection efforts, particularly if you’re behind on payments.

Our experienced bankruptcy attorney can help you navigate these exceptions and provide a strategy to manage any remaining obligations.

What Happens to Bill Collectors After Bankruptcy?

Once your bankruptcy case is completed:

Chapter 7 Bankruptcy: Most eligible debts are discharged, meaning you are no longer responsible for paying them. Creditors cannot resume collection efforts on discharged debts.
Chapter 13 Bankruptcy: You’ll follow a court-approved repayment plan for three to five years. Creditors included in the plan must abide by its terms and cannot contact you for payment.

If a creditor attempts to collect on a debt that was discharged in bankruptcy, they may be subject to legal penalties.

Steps to Stop Bill Collectors with Bankruptcy

File Your Petition: Work with a bankruptcy attorney to prepare and file your case. The automatic stay takes effect as soon as you file.
Inform Creditors: Provide creditors with your bankruptcy case number and attorney’s contact information. They are required to direct all future communications to your attorney.
Report Violations: If creditors continue to contact you, inform your attorney immediately. Legal action can be taken against them for violating the automatic stay.

Why Choose The Law Offices of Adam C. Gomerman?

At The Law Offices of Adam C. Gomerman, we understand how stressful creditor harassment can be. Here’s why you can trust us to help:

Experience: Over 30 years of expertise in bankruptcy law and debt relief.
Personal Attention: We treat every client with respect and provide tailored solutions to their unique situation.
Proven Results: We’ve helped thousands of Long Islanders put an end to collection calls and achieve financial stability.

Remember, if we can’t help you, nobody can.

Take the First Step Toward Peace of Mind

Filing for bankruptcy is a powerful way to stop bill collectors from calling and regain control of your financial life. Let us help you take the first step toward a fresh start.

Schedule a free consultation with our experienced bankruptcy attorney in Long Island.

Final Thoughts

If you’re tired of constant calls and harassment from bill collectors, bankruptcy may be the solution you’ve been searching for. The automatic stay offers immediate relief and legal protection, giving you the breathing room to focus on rebuilding your finances. At The Law Offices of Adam C. Gomerman, we’re here to guide you every step of the way.

Don’t let debt collectors control your life. Reach out to us today, and let’s work together to secure your peace of mind and financial future.