Will Filing for Bankruptcy Stop Collections?

Full Video Transcript

Overwhelmed by debt and constant collection calls? Filing for bankruptcy might offer you some relief. When you file for bankruptcy, an “automatic stay” is immediately enacted. This legal action temporarily halts most collection activities, giving you a breather from creditor harassment. The automatic stay stops actions like phone calls, wage garnishments, repossessions, and lawsuits. It’s designed to provide relief while you work through your financial situation under the protection of the bankruptcy court. While the automatic stay offers significant protection, there are exceptions. Some debts, like child support and certain tax obligations, may still be collected. To explore more about bankruptcy and how it can help you manage debt, visit LawInfo.com and find a bankruptcy lawyer near you.