Stop creditors harassing me
One thing I have learned from the time sitting down with countless clients is that they universally hate the endless phone calls from creditors. Worse, sometimes creditors have filed a lawsuit to collect a debt or have already obtained a judgment. These collection efforts are unsettling and those who find themselves on the receiving end of those efforts want to put an end to them.
When a bankruptcy is filed, creditors are supposed to immediately stop all phone calls, lawsuits and any other collection efforts. The bankruptcy is filed with special federal courts that are set up to specifically deal with bankruptcy matters. Every state has at least one bankruptcy court. In Utah, the bankruptcy court is located in Salt Lake City, though hearings are also held in other locations in the state like St. George.
Something called a bankruptcy petition is filed with the court to start a bankruptcy and it immediately triggers a federal court order called an “automatic stay.” This automatic stay is what prohibits creditors from continuing their collection efforts.
Some creditors will get immediate notice that you have filed for bankruptcy. Credit card companies, many car lenders and many collection agencies will receive immediate notice. Some other creditors, particularly pay day loan creditors may not get immediate notice. If some creditors do not get the notice immediately, we only need to inform them that a bankruptcy has been filed when they call so they do not call again. As your attorney, I will tell you that if any creditor contacts you, you should tell them to call my office instead and I will give them the information they need concerning your bankruptcy.
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