Incoming call on smart phone screen from Creditor

Does Bankruptcy Stop Creditor Calls?

The Crow Law Firm June 4, 2024

Facing bankruptcy can often be an overwhelming experience, filled with uncertainty and anxiety about the future. The stress is compounded by relentless creditor calls, making an already difficult situation feel even more unbearable. These constant interruptions can disrupt your daily life, invade your personal space, and heighten your sense of vulnerability.  

Fortunately, there are ways to find relief from these harassing phone calls and regain some sense of control over your situation. By taking proactive steps, you can alleviate some of the immediate pressures and start working toward a more stable financial future. 

At The Crow Law Firm, we understand what you're going through, and we're here to help you every step of the way. Our experienced team of attorneys is dedicated to providing personalized support and expert legal advice to ensure your rights are protected and your concerns are addressed. We are committed to guiding you through the complexities of the legal system with compassion and professionalism. 

Understanding Creditor Harassment

Creditor harassment occurs when creditors use aggressive tactics to pressure you into paying your debts. These tactics often include frequent phone calls, threatening letters, and even lawsuits. It's important to know that while creditors have the right to collect debts, they must operate within legal boundaries. 

Common tactics used by creditors include: 

  • Repeated calls at all hours of the day 

  • Threatening letters demanding immediate payment 

  • Lawsuits to recover the owed money 

Thankfully, there are legal protections in place to help you deal with these aggressive collection tactics. 

Bankruptcy and the Automatic Stay

One of the most immediate benefits of filing for bankruptcy is the automatic stay. The moment you file for bankruptcy, the court issues an automatic stay that halts most collection activities, including phone calls, letters, and lawsuits. This legal protection provides you with much-needed relief and breathing room to sort out your financial situation. 

How the Automatic Stay Works

The automatic stay is a court order that goes into effect as soon as you file for bankruptcy. It prohibits creditors from taking any further collection actions against you. This means no more phone calls, no more letters, and no more lawsuits while the bankruptcy process is underway. 

Here’s what the automatic stay covers: 

  • Stopping creditor calls and harassment 

  • Halting foreclosure processes 

  • Preventing wage garnishments 

  • Suspending eviction proceedings 

Exceptions to the Automatic Stay

While the automatic stay offers broad protection, there are certain exceptions where it may not apply. Understanding these exceptions is crucial to knowing what to expect during the bankruptcy process. 

Specific Situations Where the Automatic Stay May Not Apply

  • Criminal proceedings: Bankruptcy does not stop criminal actions or proceedings against you. 

  • Domestic support obligations: Child support and alimony payments are not affected by the automatic stay. 

  • Tax audits and certain tax liens: While most tax collection activities are halted, some actions related to tax audits or liens may continue. 

What to Do if Creditors Keep Calling

Despite the automatic stay, there may be instances where creditors continue to call. If this happens, it’s important to ensure your rights are protected. 

Steps to take if creditors keep calling after filing for bankruptcy: 

  1. Notify your attorney: Inform your bankruptcy attorney immediately. 

  1. Document the calls: Keep a record of each call, noting the date, time, and content of the conversation. 

  1. Send a cease-and-desist letter: Your attorney can send a letter to the creditor demanding they stop contacting you. 

  1. File a motion for contempt: If the calls persist, your attorney can file a motion with the court to hold the creditor in contempt. 

Long-Term Solutions

Bankruptcy can provide immediate relief from creditor harassment, but managing your financial future post-bankruptcy is equally important. At The Crow Law Firm, we emphasize the importance of financial literacy and provide guidance on rebuilding your credit and maintaining financial health: 

  • Monitor your credit report: Regularly check your credit report for errors and address them promptly. 

  • Create a budget: Develop a realistic budget to manage your income and expenses effectively. 

  • Use credit responsibly: Start with a secured credit card and make timely payments to rebuild your credit score. 

It's essential to consult with a qualified bankruptcy attorney who can provide personalized advice based on your unique situation. Our team at The Crow Law Firm is dedicated to helping you understand your options and make informed decisions. 

Ready to Take the First Step?

Filing for bankruptcy can be a powerful tool to stop creditor harassment and regain control over your financial life. At The Crow Law Firm, we are deeply committed to guiding you through this process with expertise and compassion. If you have concerns about creditor harassment or the bankruptcy process in general, don’t hesitate to reach out to us.  

We proudly serve clients throughout Monroe, Union County, Mecklenburg County, Cabarrus County, Stanley County, Anson County, Chesterfield County, Lancaster County, and York County, North Carolina.