What Can Creditors Do If You Don’t File for Bankruptcy?
Are you living paycheck to paycheck and still struggling with debt? If so, you aren't alone. Many hard-working people are struggling to make ends meet while also dealing with an unending stream of debt collection calls and late notices. Bankruptcy can offer some relief, but it isn't the best solution for everyone. If you're feeling financially challenged, you may wonder what happens if you don't file for bankruptcy protection. I'll break down just how far creditors can go.
The Craig Black Law Firm helps consumers get the bankruptcy protection they need. If you have questions about bankruptcy and other legal issues surrounding debt, my firm can help answer them. When you call my office at 678-888-1778, I answer the phone and speak to you personally. You can also reach me by completing my contact form.
Debt and Creditor Rights
Creditors loan funds with the assumption that you'll pay back the debt as originally agreed. When you miss or skip one or more payments, your creditors do have the legal right to try to collect the money you owe. Permitted collections efforts include:
- Late notices with financial penalties as noted in the creditor's terms.
- Reasonable contact attempts, including by phone, email, text, and mail.
- Selling the debt to third-party collection agencies.
- Reporting late or unpaid debts to credit bureaus, negatively impacting your credit score.
- Garnishing wages through a court order.
- Seizing funds from your bank account through a court order.
- Suing you to recoup funds owed.
- Repossessing vehicles without warning.
- Foreclosing on your home after sufficient notice.
- Suing you, getting a judgment, and placing a lien on your home.
How Bankruptcy Can Help
If you're facing any of the above consequences, bankruptcy could provide a lifeline. As soon as your bankruptcy is granted, the judge will issue an automatic stay. This order will:
- Immediately stop all collection attempts, which means no more calls or threatening emails from creditors.
- Stop any wage garnishments, giving you full access to your paycheck.
- Halt any repossessions or foreclosures.
- Erase most of your debts or set you up on a payment plan to address them.
If you file for bankruptcy, whether you choose Chapter 7 or 13, you'll effectively limit what creditors can do about your debt. With both types of debt, as long as you pay your mortgage and car payments reliably, you'll typically be able to keep your car and home.
The Craig Black Law Firm's Personal Touch
Financial turbulence can be stressful, but the Craig Black Law Firm is here to help. I can take a look at your finances and let you know my thoughts on your options. If you do decide to proceed with a bankruptcy filing, I can handle that for you, as well, leveraging my years of experience to make the process easier.
If you're dealing with mounting debt, bankruptcy could give you the fresh start you need. Give me a call at 678-888-1778 or complete this contact form to get in touch.