Digging yourself into a financial hole may happen for a variety of reasons. A sudden job loss or medical emergency may see you diverting money to pay for things outside of your control. When your financial situation worsens, and debt collectors call around the clock, you may want to consider filing for bankruptcy.
You may believe filing bankruptcy signals failure, but the opposite is true. The first step to reclaiming your solid financial path may lie in starting over.
How does bankruptcy stop collectors?
Collectors have rules they must adhere to, or else they may find themselves in legal hot water. When you declare bankruptcy, those you owe money to will receive notice. A bankruptcy filing stops all further collection activity until you proceed to court.
What happens if they keep contacting you?
If a collector continues to contact you after you file for bankruptcy, you may report them. Keep records of when they contact you and what they say. Malicious collectors may try to convince you that you still need to pay your debt through them outside of bankruptcy court.
Do most of your communication in writing to make it clear that you have expressed your bankruptcy status. Sending certified mail with a return receipt can show that the company has the information it needs to stop its contact.
Bankruptcy is a financial reset and allows you to get your world back under control. If the collectors continue to call and try to strongarm you into paying them, a professional with experience with the process may aid you in what comes next.