CAN I STOP CREDITOR HARASSMENT?

When you get behind in paying your debts, creditors begin to take various actions to collect. These actions often include:

• threatening mail from collection agencies and attorneys;
  
• telephone calls to your home, your work, your family, even your neighbors and friends;
  
• personal visits to your home and work by bill collectors creating embarrassment in front of family, friends, fellow employees or your employer;
  
• cosigners may be called upon to make payment;
  
• foreclosure proceedings may be started to take your home away;
  
• automobiles, furniture, jewelry, appliances or other personal items may be repossessed;
  
• lawsuits may be filed against you and judgments obtained;
  
• your wages and checking or savings accounts can be garnished or seized;
  
• if you owe the IRS or other taxing authorities, they may put a lien on all of your property and seize anything you have. If you own a business, they can even close your business without first obtaining a court order.
  

If you file for protection under the United States Bankruptcy Code, all of these collection efforts can be stopped. The Bankruptcy Court, upon your filing, will issue a restraining order called an automatic stay that will stop all further collection activities. No more abusive phone calls, letters, and other harassment by bill collectors. No foreclosures, repossessions, demands on cosigners, garnishments or seizures by the IRS, lawsuits or judgments are allowed while you are under the protection of the Bankruptcy Court.

If you file a Chapter 7 or "straight Bankruptcy" you will probably keep most or all of the things you own. Most debts are unsecured and dischargeable - that means that the creditor doesn't have a lien or a security interest on anything. When the bankruptcy case is over, these unsecured creditors will be wiped out and can never harass you again. In some cases, even the IRS may be able to be wiped out.

Secured creditors like mortgages and car loans can be stopped from foreclosing or repossessing anything without first obtaining bankruptcy court permission to do so. If you want to keep a secured item, you will have to bring the payments current within a reasonable time which may vary depending on the item that is secured, or you may redeem, that is buy the item from the creditor for its' present value even if less than you owe. Otherwise you may give up a secured item to the creditor holding the lien on it and be free of any further obligation or harassment by that creditor.

If the primary problem creditor is taxes or student loans (which are often non-dischargeable) or an arrearage on a mortgage or other secured debt on something you want to keep, the filing of a Chapter 11, 12, or 13 reorganization will allow you the opportunity to set up a payment plan you can live with.

Yes, the protection of the Bankruptcy Court probably can get the creditors off your back and give you control of your life.