For anyone who may be struggling with overwhelming or unmanageable debt, it is not uncommon to hear from debt collectors while navigating the process of resolving your debt situation. Some collectors can at times employ coercive or aggressive tactics to pursue debts by calling, texting or even filing lawsuits in their effort to collect. Dealing with debt collectors can be a scary or stress inducing situation, and it is very natural to wonder what your potential options might be to help defend against their actions. One of the first things that people will consider when pondering on this is whether bankruptcy is a potential option to help.
In short, the answer is yes! Bankruptcy can absolutely be an excellent tool to help defend against debt collectors and the debt collection process generally! Bankruptcy can assist with this in two ways: first, by protecting those who file with something known as the automatic stay, and second, by offering those who file the benefits granted by the bankruptcy discharge.
The first concept – the automatic stay – is a broad shield that can help protect against any number of different things, including perhaps most significantly, collections efforts by creditors. The automatic stay takes effect upon filing and lasts until the discharge goes through, and not only does it prevent creditors or debt collectors from suing you while the bankruptcy is active, it prevents them from contacting you at all!
The second concept – the discharge – is a legal mechanism that wipes out your personal liability on most forms of debt, including all unsecured debts that are not specifically excepted from discharge under the bankruptcy code (such as student loans, certain types of taxes etc.). This means that the bankruptcy protects you from debt collectors and creditors in two ways: firstly, by preventing them from communicating with you or collecting against you while the bankruptcy is ongoing, and then secondly by wiping out any obligation that you might have on debts owed to them through the discharge so that when the bankruptcy is finished, they have no ability to collect against you ever again!
CALL NOW FOR A FREE STRATEGY SESSION FROM AN MN BANKRUPTCY LAWYER AT LIFEBACK LAW FIRM
Debt collection can be an intimidating and anxiety inducing process, and anyone who finds themselves facing the prospect of debt collection will naturally want to find a way to protect themselves from collectors and the debt collection process generally. Bankruptcy can be an excellent tool to do this, and in speaking with an attorney at our firm, we will outline exactly how bankruptcy can be tailored to protect you and resolve the situation permanently. So, when the time is right, or when you are ready, please don’t hesitate to reach out to Minnesota’s most kind and helpful bankruptcy law firm by going now to www.lifebacklaw.com.
