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On Behalf of | Jan 11, 2017 | Bankruptcy

Although bankruptcy is often the most responsible financial decision available in times of large debt, it can be difficult to make the final decision to file for bankruptcy when you are afraid of the repercussions that decision might have on your life. This fear is usually based on the prior actions creditors have taken; they often stoop to bullying tactics, such as threatening to foreclose homes, repossess belongings, and generally make life miserable. You might be thinking, “If I file for bankruptcy, won’t it just get worse? I’m being harassed enough as it is.” Fortunately for you, there is something called bankruptcy protection that will ensure that you do not have to deal with unwanted harassment from your creditors.


Bankruptcy protection is not separate from bankruptcy; in fact, it is an integral part of the bankruptcy process. This aspect of bankruptcy is designed to give you some breathing room while you are sorting out your finances and coming up with a plan of action with your attorney. It protects you from being contacted in any way by your creditors during the bankruptcy process. In addition, it prevents creditors from doing things like repossessing your belongings and foreclosing your home. This is designed to give you time to put everything in order, fill out your paperwork, and gather the necessary information for your bankruptcy.

How Does It Work?

Filing bankruptcy will initiate what is called an automatic stay. This is what stops creditors from contacting you. Once the calls and letters stop, you will be able to concentrate on what’s important: getting together the information you need and coming up with a plan. During the stay, you will meet with your attorney. You will also meet with your creditors in a controlled environment, but they will not be able to take that time to harass you about your debt. Once you are officially in bankruptcy, you will be protected from your creditors in a different way; they will not be able to get back at you in any way. If your bankruptcy is approved, creditors are not allowed to harm you in retaliation! If you keep your assets through your bankruptcy, your creditors are legally prohibited from taking them away.