One of the most stressful parts of being in debt is having to deal with creditors on a constant basis. Creditor harassment can be a huge problem that can even contribute to mental illness when trying to get out of debt. You might notice that you are in constant dread of receiving yet another debt collection letter through the door along with the threats and consequences. You might feel your pulse quicken every time the phone rings, fearing that there is another debt collector on the line.
While there are a great deal of protections in place for debtors dealing with creditor harassment, one of the most sure fire ways to halt it, while taking action to rid yourself of your debts, is filing for bankruptcy.
How does a bankruptcy filing put a stop to debt collector harassment?
When you file for bankruptcy, you essentially commit to a plan of repaying the majority of your existing debts over a number of years. This plan is filed with the bankruptcy courts, who oversee the entire process. The bankruptcy courts have certain legal powers, and once they are satisfied with the debtor's repayment plan, they can forbid all creditors from their debt collection efforts over the entire period.
How could a Chapter 13 filing be beneficial?
In addition to halting all debt collection efforts, filing for Chapter 13 bankruptcy can also mean that foreclosure can be avoided.
Choosing the right type of bankruptcy filing for you can be a lengthy process. It is important that you consider whether Chapter 13 is right for you in Florida.
Source: US Courts, "Chapter 13 - Bankruptcy Basics," accessed May 03, 2018