Creditors Cannot Come After You When You File for Protection
On the day that your bankruptcy petition is filed, you are protected from any further efforts by creditors and debt collectors. No more letters or phone calls. No liens or garnishments. No repossession or foreclosure. It all stops.
The law firm of David F. Cannon can help you seek immediate protection from creditors and then pursue discharge or reorganization of your debts. Our Nashville lawyers have handled thousands of consumer and small-business bankruptcies across Middle Tennessee. Contact us to discuss whether bankruptcy can protect you.
Creditors and the Automatic Stay · Tennessee Bankruptcy Attorney
Under penalty of law, creditors must cease collection efforts or legal action upon notice that you have filed for bankruptcy. This is called the automatic stay, and it also applies to collection agencies, repo companies and other third parties.
If creditors ignore the automatic stay by contacting you or failing to halt legal actions, they can be held in contempt of court by a federal bankruptcy judge. Intentional violations are punished harshly, especially for repeated violations, abuse language or threats. If a creditor does not cease collection activities or asks for proof of your filing, you can give them the case number and your attorney's contact information.
Once the automatic stay is invoked, it applies to all collection activities:
- Creditor harassment — Creditors cannot contact you by phone, mail or electronically.
- Lawsuits and liens — Creditors cannot go to court over your debts.
- Garnished wages — Garnishment orders are prevented or halted immediately.
- Repossession — Lenders and creditors cannot repossess your car, furniture or other collateralized property.
- Foreclosure — Foreclosure proceedings are halted by bankruptcy, even on the eve of the sheriff's sale.
Nashville Debtor Protection Attorney
The automatic stay is not permanent. If you do not keep up with your car payments or house payments after filing for bankruptcy, the bank can resume repossession or foreclosure. The automatic stay does provide peace from the harassing phone calls and it does buy you time to decide what to do and get your financial house in order.
David F. Cannon is certified as a Consumer Bankruptcy Specialist by The American Board of Certification and The Tennessee Commission on Continuing Legal Education and Specialization. He is eminently qualified to provide dependable advice and to maximize the benefits of bankruptcy on your behalf.
Call 615-800-3725, toll free at 877-696-8680, or e-mail our law office today to arrange a confidential consultation.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
