Birmingham, AL Law Firm Advocates for Those Filing Bankruptcy

Alabama Bankruptcy Attorneys Help Stop Creditor Harassment

If you are receiving harassing phone calls from creditors, filing for bankruptcy can provide welcome relief. Once the bankruptcy petition is filed, an immediate injunction known as an automatic stay will stop all collection efforts by creditors, collection agencies, and government entities.

Although an automatic stay takes effect the moment the bankruptcy petition is filed, secured creditors with sufficient grounds to make the request can ask the bankruptcy court to lift the injunction. However, creditors typically make every effort not to violate an automatic stay, since doing so can result in a damages claim against them.

What Does an Automatic Stay Do?

An automatic stay can protect a debtor against certain actions made by a creditor, such as:

• Initiation or continuation of court proceedings against the debtor
• Actions to obtain a debtor’s property, or to create, perfect, or enforce a lien against it
• Eviction or foreclosure
• Civil contempt orders for failure to pay child support
• Losing access to basic resources such as utility services, welfare or unemployment benefits
• Numerous wage garnishments

Once an automatic becomes effective, creditors are not likely to make further collect efforts.

What an Automatic Stay Will Not Stop

There are times when an automatic stay won’t allow the bankruptcy petitioner to avoid certain actions. These include:

• IRS audits
• Lawsuits to establish paternity or determine, amend, or collect child support or alimony
• Criminal proceedings

Contact an Experienced Birmingham, AL Bankruptcy Law Firm

Are you being harassed by abusive creditors? Contact the Birmingham bankruptcy lawyers at the Bond & Botes Law Offices online or call 1-877-581-3396 to talk about how an automatic stay can stop phone calls from bill collectors.