An automatic bankruptcy stay is entered immediately, whenever a bankruptcy petition if filed. As per the bankruptcy law, this stay forbids the creditors from any debt collection activity. This includes all those annoying calls that you get from them for debt collection. This is a way of giving bankruptcy protection to the borrowers. From the moment of filing bankruptcy, you are protected by the bankruptcy law, and the creditors cannot call you anymore, but the notice might reach them after a few days, only after the bankruptcy court mails it to them. In case, you receive calls from the creditors after bankruptcy filing, tell them that you have already filed for bankruptcy relief. You can also ask your bankruptcy attorney about the next step that you want to take. Creditors are well aware of the bankruptcy laws, and once they know that you have filed for bankruptcy, they will stop calling you.
Exempt Debts Still Collectible
If you have applied for debt relief, just keep in mind that even if you get through it, you are supposed to pay the exempt debts. These debts are still collectible, even if you are successful in bankruptcy filing. In a majority of cases, these debts are non-dischargeable through bankruptcy. This is why a debtor has no protection from creditors. If you want to qualify for an automatic stay, a bankruptcy must be filed. The name, contact number, and mailing address of the creditor has to be given to the bankruptcy lawyer, and the reason for taking debt has to be told as well. If the debtor does not comply by the bankruptcy law for application process, the creditor can continue the collection activities.
Filing Bankruptcy Individually
The automatic stay rule also applies to debtors, who are filing bankruptcy by acting as their own attorneys. But in this case, the letters and phone calls from creditors might not stop, because communication by a bankruptcy attorney is needed justify the stop. Since, the debtor has taken the attorneys position; he/she is the main contact person now.
