Once you file for bankruptcy, you can end collection activity once and for all. No more threatening phone calls, letters, emails, or texts from creditors. Regardless of whether you file for Chapter 7 bankruptcy or Chapter 13 bankruptcy, once you file, creditors are required to immediately stop contacting you to collect any more debts.

Learn more about how and why collection activities will cease when you file for bankruptcy through the following:

• Automatic Stay: Automatic stay puts an immediate halt to any impending legal action, and most actions by creditors or collection agencies. An automatic stay is a very strong shield that’s put up around you once you have filed bankruptcy to stop your creditors from having any sort of contact with you. For some, it provides a compelling reason on its own to file for bankruptcy. Read more about automatic stay here.
• Avoid/Stop/Delay Home Foreclosure: Bankruptcy is a very good way to thwart home foreclosure. Although the effect it will have could be permanent or temporary, it is a powerful tool for anyone who is behind on payments and wants more time in their home. When you file for bankruptcy, an automatic stay is issued which forces your creditors to immediately stop contacting and conducting any collection actions. If your home is going to be foreclosed upon or is in an active foreclosure case, the automatic stay will legally stall the action from taking place. Read more about saving your home here.
• Stop Repossession: Filing for bankruptcy may be able to help you avoid having your car repossessed. Depending on whether you file for Chapter 7 or Chapter 13 bankruptcy, your car loan lender may or may not be able to repossess your car.  Learn more about how bankruptcy can help stop repossession here.
•  Stop Creditor Harassment: Typically when you file for bankruptcy, creditors are legally required by automatic stay to stop contacting you immediately. Automatic stay is intended to stop any and all communication from creditors, foreclosures, repossession, wage garnishment, and lawsuits against you.  Read more about putting an end to creditor harassment here.
• Stop Wage Garnishment: If you are facing wage garnishment, bankruptcy may be a solution to stop your wages from being garnished and even a way to get them back.Wage garnishment is the deduction of money from an individual’s income for the purpose of paying off debts that they owe. Garnishments typically require a court mandated order and employers usually must give notification prior to the garnishment taking effect. Once a court order is filed by whomever the money is owed, those documents are sent to the debtor’s employer. The employer then withholds money from the employee’s paycheck, and sends this to the court. The court then forwards a check to whomever the debtor owes money.  Read more about how to stop wage garnishment here.