Having to pay bills while one is struggling to make ends meet is difficult enough but it can become overbearing if debt collectors routinely call someone to remind them of their debt. Unfortunately, these calls can come at all times of the day and are often even made to family members, adding to the pressure to repay it. One of the benefits of filing for Chapter 7 bankruptcy is that debt collectors can no longer try to collect those debts that were discharged in the bankruptcy.
Debt collection efforts must stop after filing for bankruptcy
As soon as a Florida resident files for bankruptcy, debt collectors are prevented from continuing collection as long as the case is pending. While debt collectors should be sent notice about the proceedings, if they are still calling, debtors should let them know bankruptcy has been filed for. If there is an attorney handling the case, debt collectors should call the attorney instead of the filer.
Once a debt has been discharged, debt collectors are permanently barred from collecting the debt. However, this doesn’t mean that they cannot collect their collateral. This means auto lenders can repossess the vehicle if a default has happened and this right may not be extinguished after debt discharge.
Proper guidance can go a long way
While filing for Chapter 7 bankruptcy may be the right way forward for many Florida residents, it is important to understand the process and how it can affect one’s financial life, both in the short and long run. Those who are considering filing for it may want to consult an experienced attorney for guidance on how to proceed.