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For many Texans struggling with debt, the constant phone calls, letters, and threats from creditors are often the most stressful part of financial hardship. Every ring of the phone can bring a new wave of anxiety. What many people don’t realize is that filing for bankruptcy offers immediate protection from this kind of harassment. Once your case is filed, those relentless calls stop, legally and completely.
How Bankruptcy Stops Creditor Contact
The moment you file for bankruptcy, something powerful happens: the automatic stay takes effect. This is a court order that immediately stops most collection actions against you. Creditors, collection agencies, and even government entities must pause all efforts to collect debts while your case is active.
The automatic stay puts an end to:
- Phone calls, emails, and letters demanding payment
- Lawsuits and wage garnishments
- Foreclosure or repossession proceedings
- Utility disconnections and eviction actions (in most cases)
If a creditor continues to contact you after being notified of your bankruptcy, they’re breaking federal law. Your attorney can report the violation to the court, and the creditor may face penalties.
Understanding the Automatic Stay
The automatic stay is one of the most powerful tools in bankruptcy law. It provides you with breathing room — time to regroup, review your finances, and work toward a solution without constant pressure. It applies immediately upon filing, whether you choose Chapter 7 or Chapter 13 bankruptcy.
- In Chapter 7, collection efforts stop while your non-exempt assets (if any) are used to pay creditors, and the remaining eligible debts are discharged.
- In Chapter 13, the stay remains in place throughout your repayment plan, protecting you as long as you keep up with your court-approved payments.
In both cases, the harassment ends the moment your case is filed.
What If Creditors Keep Calling?
Sometimes, creditors claim they “didn’t know” about the filing. That’s not an excuse. Once your bankruptcy petition is submitted, the court notifies all listed creditors. If any continue to call, you can:
- Refer them to your attorney. Simply provide your attorney’s contact information and end the call.
- Document the communication. Keep notes of dates, times, and what was said.
- Inform your lawyer immediately. Your attorney can contact the creditor or take legal action for violating the automatic stay.
Repeated contact after notice may lead to sanctions, fines, or damages in your favor.
Why Creditor Harassment Happens
Creditors use aggressive tactics because they often work. Fear and embarrassment can push people to make payments they can’t afford. Common forms of harassment include:
- Calling multiple times per day or at inappropriate hours
- Contacting family, friends, or employers
- Using threatening or abusive language
- Misrepresenting the amount owed or the legal consequences
These behaviors aren’t just stressful; many of them are illegal under the Fair Debt Collection Practices Act (FDCPA). When combined with bankruptcy protections, you have strong legal tools to make the harassment stop for good.
Peace of Mind Starts with One Filing
Filing for bankruptcy doesn’t just relieve financial pressure; it restores your peace of mind. You’ll no longer dread answering the phone or opening the mail. You can focus on rebuilding your financial stability without constant interference from creditors.
If you’re feeling trapped by debt and harassment, remember that help is available. Bankruptcy is not a failure; it’s a legal right designed to give you a fresh start.
Rebuild Your Life with Confidence
At Toronjo & Prosser Law, we help Texans take back control of their finances and their sense of security. Our attorneys understand how stressful creditor harassment can be, and we’ll guide you through every step of the bankruptcy process with care and respect.
Don’t let the calls continue. Contact Toronjo & Prosser Law today to schedule a consultation and find out how bankruptcy can help you stop creditor harassment and start fresh.