Creditor Harassment Attorney in Springfield

Defending Your Rights Against Creditor Intimidation

Protecting your assets from creditors and eliminating harassing phone calls, mail, and other collection efforts is a benefit of filing bankruptcy. Once your bankruptcy is filed you have legal protection to stop harassment from collection agencies in Springfield, Missouri.

Understanding How Bankruptcy Halts Creditor Harassment

Whenever a Chapter 7 or Chapter 13 bankruptcy case is filed, there is an automatic stay that goes into effect. The automatic stay is an injunction, or a prohibition, on a creditor from taking action to collect a debt from someone that has filed bankruptcy.

The automatic stay protects people from any type of collection effort including lawsuits, garnishments, creditor phone calls or letters, vehicle repossessions, and home foreclosures.

Duration of the Automatic Stay: What You Need to Know

The automatic stay lasts until either a case closes or is dismissed. However, there are some exceptions:

• A creditor can file a Motion for Relief from the Automatic Stay. If the court gives the creditor relief from the stay, the creditor can pursue certain remedies to enforce their debt. Typically, this scenario arises when someone filing for bankruptcy relief has a secured debt, like a vehicle or house loan, and it is their intention to surrender the vehicle or house as part of the bankruptcy. Even if it is the intention of the person filing for bankruptcy relief to surrender the asset, the creditor must still have permission of the bankruptcy court to proceed with the repossession or foreclosure unless 30 days has passed from the first setting of the 341 meeting.
• The automatic stay is limited to 30 days if you had a previous bankruptcy case dismissed within a year of the filing of another case. An experienced Chapter 7 or Chapter 13 bankruptcy attorney can file a motion with the court to extend the stay past the 30-day time frame if the case warrants an extension.
• The automatic stay does not go into effect if you have had two previous bankruptcy cases dismissed within a year of the filing of the third case. An experienced Chapter 7 or Chapter 13 bankruptcy attorney can file a motion with the court to impose the stay in certain circumstances. During a Chapter 13 case, the automatic stay also applies to codebtors, or people who are cosigned on debts with you. This is called the codebtor stay. It is important to remember that the codebtor stay only applies to consumer debt, not business debt. This means that while you are in a Chapter 13 case, a creditor cannot pursue anyone who is cosigned on a debt with you unless they have prior court permission to do so.

Consequences of Violating the Automatic Stay

If a creditor violates the automatic stay by continuing to pursue you for a debt that was listed in your bankruptcy case, the creditor can be penalized for violating the stay.

An experienced bankruptcy attorney can file a Motion for Sanctions against a creditor that fails to abide by the stay and the creditor can be ordered to pay damages and attorney fees for their violation.

Understanding Creditor Harassment in Springfield, MO

In Springfield, residents can face the stress of creditor harassment, especially during tough financial times. Local resources, such as the City of Springfield and the State of Missouri, provide valuable information on consumer rights and protections against aggressive collection practices. Knowing your rights can empower you to take action against harassment.

Recognizing the Stressors Our Clients Face

Many Springfield residents experience overwhelming pressure from creditors, which can lead to anxiety and uncertainty about their financial future. The local economy, influenced by various factors including job availability and cost of living, can make it challenging for individuals to keep up with debt payments. This is where understanding the legal protections available through bankruptcy becomes crucial.

When you file for bankruptcy in Springfield, the automatic stay immediately halts all collection efforts, providing you with the relief you need. This means no more relentless phone calls or threatening letters from creditors. The bankruptcy process is designed to give you a fresh start, allowing you to regain control over your financial situation.

Don’t let creditor harassment dictate your life. Work with our team in Springfield to learn how we can help you stop the harassment and regain your peace of mind.

Contact Our Springfield Attorneys to Stop Creditor Harassment Today! Talk to one of our skilled Springfield attorneys and find out how an automatic stay can provide protection from creditors and help stop harassment from collection agencies. Call our office at (417) 213-5006 or complete our online contact form today.

Commonly Asked Questions

How badly will filing for bankruptcy impact my credit score?

Filing for bankruptcy can impact your credit score and financial history, but it also offers a valuable opportunity for a fresh start. While your score may be lower, the effect is often minimal for those with already low credit—and some may even see a slight increase as certain debts are wiped from their report. Over time, bankruptcy can actually aid in rebuilding credit, since FICO scores are compared to other bankruptcy filers. Therefore, with responsible financial habits after filing, it is possible to improve your credit in the long run.

How can I rebuild my credit after bankruptcy?

Rebuilding your credit after bankruptcy involves steps such as making timely payments, budgeting carefully, responsibly using a secured or low-limit unsecured credit card, keeping balances low, becoming an authorized user on a relative or friend’s credit card, and monitoring your credit regularly.

How can I determine if bankruptcy is the right option for me?

Assessing whether bankruptcy is the right option involves considering your overall financial situation, including your income, debts, and assets. It is also beneficial to consult with a bankruptcy attorney who can provide personalized guidance.