15 Jan Know How Bankruptcy Can Bring Creditor Harassment to an End

Are you thinking about going bankrupt? Are you unable to pay your debts? For people who have run into terrible financial hurdles, dealing with the belligerent and forceful creditors can be overwhelming. The threats or intimidation you encounter every day can give you a genuine headache. From sleepless nights to day by day anxiety, the persistently worrying turmoil can make your head spin.

In the event that this is the circumstance, you are in; declaring your insolvency under the Minnesota Bankruptcy Law may be the ideal solution for you. As per its design, the law prevents the creditor’s authority and ability to continue harassing you. Filing your petition through a recognized Minneapolis Bankruptcy law firm will halt creditor harassment and assist you in taking control of your financial obligations.

How does bankruptcy work?

But how does bankruptcy law work at stopping creditors from calling you? The moment you file for Minneapolis Chapter 7 Bankruptcy and Chapter 13 Bankruptcy, you are protected by an automatic stay order. The automatic stay is granted by the court and in 99 percent of cases you will never see a judge.  Instead your case is most often handled administratively. All it does is stop telephone calls and letters from the moneylenders including credit cards, personal loans, payday loans, medical bills, IRS and beyond. It will at last place you in control of your finances, rather than the creditors having a sway over you.

What types of debt are covered under the stay?

• Every creditor stops contacting you.
• All your wage garnishments and bank account levies are immediately stopped.
• Debt collection lawsuits are stopped.
• Repossession and foreclosure are stopped.
• You can spare yourself from chances of eviction from your house.
• Your utilities are prevented from being shut down.
• In case, you lose your driver’s license due to non-payment of parking tickets, you can have your license brought back through Minnesota Chapter 13 Bankruptcy.
• Student loan garnishments are discontinued.
• IRS is prevented from seizing the debt through garnishment.

What types of debt aren’t covered under the stay?

• Criminal proceedings.
• Financial liabilities such as alimony obligations, spousal maintenance, and child support.
• Retirement plan loans.
• Loans or debts obtained through fraudulent conduct or false pretenses.

Once the petition is filed in the Minneapolis Bankruptcy Court the automatic stay is effective during the entire length of your proceeding.

If you want to learn more about how the automatic stay can protect you and your family from creditor harassment please contact Bolinske Law the Minneapolis Bankruptcy Attorney for a free comprehensive assessment to gauge which chapter will be a better option for you.