Debt collectors want you to feel the pressure, and nothing is going to put pressure on you to pay like them harassing you day and night. Harassment tactics include calling your job, and discussing your financial information with others. Many of the collection activities that debt collectors engage in to get you to pay are actually illegal. But, even when they are legal, they can be extremely embarrassing, annoying, and can put your job at risk.
Creditors are relentless and you have to know when it is time to take action to stop creditor harassment. If you need relief from the endless stress and worry of financial debt and want to put an end to creditor harassment, contact the Law Office of Rodney K. Okano. Based in Las Vegas, Nevada, we provide Bankruptcy and debt relief services to people throughout Southern Nevada.
One of the benefits that filing bankruptcy offers to debtors is that once the case has been filed, most or all creditor activity is stayed. In other words, your creditors generally may not initiate or continue lawsuits, wage garnishments, or even telephone calls to you demanding payment for as long as your case is pending.
However, filing bankruptcy to stop creditor harassment is an extreme remedy and careful consideration should be given to all alternatives before deciding to file. That being said, there are a few situations when filing bankruptcy may be the only way to stop creditor harassment and to find relief from unmanageable debt:
1. When Your Wages Are Being Garnished
Your creditors can acquire a court order to garnish up to 25% of your wages to offset debt. This can quickly exacerbate the financial woes you already have, by leaving you less money to pay other bills.
After filing for Chapter 7 or Chapter 13 bankruptcy, all collection activities are immediately suspended. If your bankruptcy results in a discharge of the debt, your creditor will be unable to resume garnishment after the bankruptcy proceeding and may even be required to pay back any wages that were garnished, up to 90 days prior to your filing.
2. When You Are Facing Foreclosure or Repossession
If your mortgage is in arrears, you may be facing foreclosure. Likewise, if you are behind on your car payments, the finance company may be looking to repossess. However, if you qualify for Chapter 13 bankruptcy, as soon as you file, an automatic stay will go into effect and bring a halt to all foreclosure or repossession activities. You will then be allowed a 3-5 year period to make up any past due payments and keep your house or automobile. Bankruptcy laws exist to help consumers protect themselves from their creditors, so when you are being threatened with foreclosure or repossession, filing bankruptcy can help you prevent creditors from taking your most necessary possessions.
3. When You Are Overwhelmed By Medical Bills
Recovering from a serious illness or surgery can already be a trying experience, but even more so if you are being harassed by creditors and worrying about how you are going to pay for the care you need. Illness and medical emergencies are most often unexpected and can deplete your savings quickly, leaving you drowning in debt. In fact, being overwhelmed by medical bills has become one of the top three reasons why consumers turn to bankruptcy.
Many people still assume, however, that bankruptcy will not discharge your medical bills. But, this is far from the truth. Most medical bills are dischargeable under Chapter 7 or Chapter 13 Bankruptcy. So, if you qualify, filing bankruptcy can rescue you from the sudden burden of your medical expenses and give you some peace of mind while you get back on your feet physically as well as financially.