Creditor Harassment After Bankruptcy in Arizona

After you have filed for bankruptcy, it is illegal for creditors to call you regarding the debts you owe. This is referred to as an automatic stay or federal restraining order. Furthermore, if your bankruptcy case has been discharged, they are forbidden from calling you unless they have permission from the Bankruptcy Court.

What is Bankruptcy?

Bankruptcy laws help those who have had bad luck with their finances and are in debt to creditors. These courts help those people by allowing for the liquidation of assets, discharging of debt, or a repayment plan created to help. Bankruptcy laws can also help protect the businesses that are troubled by offering reorganization of debt or liquidation as options.

Types of Bankruptcy

There are six different types of bankruptcy available through bankruptcy courts. However, the most common chapters that are filed in the general population are Chapter 7 and Chapter 13.

  • Chapter 7 Bankruptcy
    • Also known as the liquidation or straight bankruptcy, this bankruptcy will discharge unsecured debt. It will not discharge debts like student loans or debts owed to the IRS.
    • You are only allowed to file for Chapter 7 bankruptcy if the court finds that you are unable to pay back these debts due to insufficient money resources.
    • If you successfully file a Chapter 7, you will be required to attend a meeting of the creditors. This meeting is where creditors are allowed to ask you all kinds of questions about the debts you have and your financial resources.
    • A Chapter 7 bankruptcy stays on your credit report for ten years.
  • Chapter 13 Bankruptcy
    • Chapter 13 bankruptcy takes all the debt you have and reorganizes it in a way that you can pay it. The court will approve a monthly payment plan to pay back a portion of the unsecured debts.
    • Unfortunately, the court will get to put you on a budget that must be followed, and they will check your spending habits.
    • Chapter 13 allows you to keep your assets instead of liquidating them. This can also help you avoid foreclosure.

The remaining chapters of bankruptcy are:

  • Chapter 11
    • Business bankruptcy
  • Chapter 12
    • Farmers and Fishermen
  • Chapter 15
    • International bankruptcy for foreign debtors
  • Chapter 9
    • Reorganizations for cities, towns, school districts, and other entities alike

Can Creditors Call Me During Bankruptcy?

No. Creditors are not allowed to collect on debts from someone who is going through bankruptcy. As soon as you have the name of your bankruptcy attorney and a case number, you should be able to give this to the creditors as proof you have filed. Once the first meeting of the creditors has commenced, they may require you to send a copy of this to them.

If you find that these creditors are relentless, you need to discuss this with your lawyer so that it can be dealt with. These calls are a violation of the Federal Bankruptcy Laws.

How Do I Handle A Bankruptcy?

As soon as you decide that bankruptcy is the best option for your finances, you will need to get into contact with an Arizona bankruptcy lawyer. These lawyers are experienced in handling the creditors who violate the bankruptcy codes. As soon as you decide that bankruptcy is the right decision for you, call an Arizona bankruptcy lawyer to handle your case.