Myth 11: Even If You File For Bankruptcy, Creditors Will Still Harass You and Your Family.
Nothing could be further from the truth.
The minute you file bankruptcy, the Bankruptcy Court issues an order telling all of your creditors to leave you alone, or else.
This order has a name. It is called the "automatic stay", and it is issued pursuant to United States Code 11, Section 362. The automatic stay prohibits you from any and all collections actions. After you file bankruptcy, the creditor is not even allowed to talk to you. In addition, the creditor must stop any collection attempts already started. The automatic stay is very powerful, and puts the full weight of the United States Courts to work for you, to make sure your creditors leave you alone.
Even better, if a creditor violates the automatic stay, you have the right to bring the creditor before the court for Contempt of Court, and to be compensated accordingly. Believe me, Bankruptcy Court Judges do not take kindly to creditors who ignore the automatic stay, and these Judges have been known to punish creditors severely. Very simply, once you file for bankruptcy, creditors must leave you alone or suffer the consequences.
My, how the tables turn, once you reach out for the help that only filing bankruptcy can provide! No more phone calls. No more collection letters. No more lawsuits. No repossessions. No foreclosures. No more threats. Nothing. It’s the law.
Can’t you just feel the relief?