How to Get Debt Collectors to Stop Calling
These days, many Americans have fallen behind on some or all of their bills. People tend to believe that through hard work, budgeting and sacrifice, they will be able to get back on track and get the debt collectors to stop calling. In some cases, this may be true. For many others, however, no matter what sacrifices are made, the numbers just don’t add up.
To make matters worse, debt collectors can be relentless with their phone calls. No matter how many times you explain your situation to them, they just don’t stop. It can be hard to keep track of which company is which. In some cases, debt collectors may even start calling you at work or harassing your family members. Because of these phone calls, many people are intimidated into entering payment plans they cannot afford. Others stop answering the phone altogether.
In order to stop these calls, many people turn to loan modification or attempt to get additional loans. While there are some situations where these options may be real solutions, for many people they still end in debt and foreclosure.
The only guaranteed way to get the bill collectors to stop calling you is through an automatic stay. Almost everyone who files for bankruptcy is entitled to an automatic stay as soon as they file. This stay prevents creditors from calling you or contacting you at all. All repossession, collection and foreclosure activities must immediately stop. Your banks and creditors will only be allowed to contact your attorney and the bankruptcy trustee. The phone calls will stop.
An automatic stay is granted in both Chapter 7 and Chapter 13 bankruptcy filings. These two types of bankruptcy are very different. Chapter 7 filings are for individuals whose income is below a certain threshold. In exchange for immediate discharge of their unsecured debts, those who file Chapter 7 may have to liquidate some of their property. Once this process starts, debt collection ends.
A Chapter 13 bankruptcy operates in a much different manner. You continue paying your mortgage, but your unsecured debts are combined into one smaller payment. At the end of a three-to-five year term, assuming you have made your payments, the rest of your unsecured debts will be discharged. By starting this process, you free yourself from constant phone calls.
Bankruptcy isn’t the right option for everyone, but when it is, it usually makes sense to file as early as possible. The professionals at DebtStoppers in Chicago are focused on getting you relief, including ending the collections calls. To plan a free consultation with an experienced bankruptcy attorney, call us today at 800-440-7235 or contact us online.