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After Filing for Bankruptcy, Can Creditors Contact Me to Collect Debts?

If you’re in financial trouble, you may consider filing for bankruptcy. In such a case, you may wonder if your creditors can continue to contact and harass you once you file. Read on to learn the answers you need to know.

The Automatic Stay

When you file for bankruptcy, you are immediately entered into what’s referred to as an automatic stay. If you’re entered into an automatic stay, creditors are legally forbidden from reaching out to you in an attempt to collect your debts until all of the court proceedings are complete.

Entering into an automatic stay means that creditors may not lawfully do any of the following:

  • Start or continue court proceedings against you,
  • Move to foreclose on your property,
  • Create, perfect, or enforce a lien against your property, or
  • Try to repossess the collateral.

If a creditor or collection agency chooses to breach the automatic stay, you have the right to sue them.

However, it’s important to keep in mind that creditors reserve the right to request that the court remove the automatic stay if your assets will likely be reduced in value significantly before your case has concluded.

An Automatic Stay Does Not Always Apply

There are certain non-debtor entities that the automatic stay does not apply to, including:

  • Corporate affiliates,
  • Corporate officers,
  • Co-defendants, or
  • Guarantors.

We’re Here to Help

If you need help with your bankruptcy or if your creditors breached an automatic stay, our attorneys can help. Our skilled team has helped many other people in similar situations and we may be able to help you with your financial goals too. Don’t hesitate to reach out to our office right away with any questions you may have.

Contact the experienced attorneys at Caddell Reynolds Law Firm by calling (800) 889-6944 or filling out an online contact form today.