It can be unnerving to receive almost constant creditor calls if you are behind on your bills and have maxed out your credit lines. This predicament is even more frustrating if you are trying to pay bills as you can, but still, do not see an end to your indebted situation.
The aggressive behavior of some creditor companies leaves many families frazzled as they try to overcome obstacles to achieving financial stability. In some situations, the disruption brought about by creditors becomes intolerable and a major source of stress.
If it seems certain that you will not be able to pay off debts in the foreseeable future, filing for bankruptcy is a way to stop creditors from calling, knocking on your door and sending letters. Once you file, the bankruptcy court issues what is called an automatic stay, and all creditor contact stops.
The Power of The Automatic Stay
The automatic stay is an order instituted at the beginning of your bankruptcy filing. It has the power to stop collection activity, even efforts that were in process at the time of the filing. If creditor agencies continue to contact you after the automatic stay gets initiated, they face severe penalties for doing so.
Moving on To a Better Future
Rather than taking on an extra burden, filing bankruptcy is seen by many as a relief. It is a chance to wipe the slate of debts clean and start over. The automatic stay provision goes a long way to help debt-ridden individuals and families lower their worry and anxiety as they prepare for a new future.