Colorado Debt Collection Lawyers
Most people who file for bankruptcy relief find that one important benefit takes effect immediately — putting a stop to debt collections and creditor harassment. Known as the automatic stay, this feature of bankruptcy law protects debtors from practically all debt collection efforts, from phone calls to lawsuits or garnishment.
To learn more about the role of bankruptcy’s automatic stay for relieving debt collection pressure, contact Mile High Bankruptcy in Denver for a free consultation. In our experience, the automatic stay is one of the two most important benefits of bankruptcy for our clients — the other, of course, is the discharge from indebtedness.
The automatic stay prohibits a broad range of collection activity from the moment the case is filed. Most of our clients can benefit from the automatic stay on an unofficial basis even before the bankruptcy case is filed.
How can I get protection from creditors before my case is filed? Once you hire us as your bankruptcy attorneys, you can refer any creditor contacts to our office. This usually stops debt collection calls within a day or two. Creditors don’t normally want to waste time and money suing people who will shortly be in bankruptcy. Relieving creditor pressure before the case is filed helps us get your bankruptcy off to a smooth start. Read more
The automatic stay doesn’t stop every legal action against you. It specifically applies to debts that existed prior to bankruptcy, and you won’t be protected from collection activities for obligations incurred afterward. Most family law support obligations, such as child support or alimony, are also excepted from the automatic stay. Criminal proceedings are similarly unaffected by bankruptcy.
Secured creditors such as mortgage holders, auto lenders or others with an interest in collateral can ask the bankruptcy court for permission to repossess the property securing their claims. Our lawyers’ advice can help you figure out whether it makes the best sense to work with the creditor toward a cure of arrearages or just to let the collateral go. Without court permission, however, the creditor can’t act against the property during bankruptcy.
For additional information about the protection and benefits you can receive from the automatic stay of bankruptcy, contact Mile High Bankruptcy in Denver for a free consultation.
We are a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code.
Common Tags: Denver Bankruptcy Automatic Stay Lawyers, Aurora Debt Collections Attorney, Colorado Creditor Harassment Lawyer, Help, Code, CO Laws, Westminster Attorneys
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