When Will Creditors Stop Calling After I File Bankruptcy?
Making the decision to file for bankruptcy is certainly not easy, but it can often the best way to give yourself a clean slate so you can stop being burdened by debt, and in some cases harassed by creditors. There are quite a few details regarding bankruptcy that can be complicated and difficult to understand.
Apart from determining what your plan is moving forward, you’re probably wondering when these creditors are going to stop calling you. Continue reading to learn more about the types of bankruptcy in Indiana and the process of discharging your debts.
Types of Bankruptcy
There are a few different types of bankruptcy that might be the right fit for you when you’re drowning in debt. The most common types include the following:
Chapter 7 – This is the most commonly referenced type of bankruptcy. In a Chapter 7 declaration, all of your assets will be liquidated and sold to pay back your creditors. Despite its household name, only those who fall below the federal poverty income limitations of $12,000 per year can qualify.
Chapter 13 – In Chapter 13, your belongings aren’t sold, but you are expected to formulate a plan of repayment that will span between three and five years. This allows you to repay your creditors over time while retaining possession of your assets.
Chapter 11 – This form of bankruptcy is essentially the same as Chapter 13 except that it is used by large corporations and business owners. Filing for Chapter 11 allows the businesses to remain open while the debtor’s debts are being repaid.
In any of these types of bankruptcy, your creditors will no longer be able to call you to pursue your debts once you’ve officially filed for bankruptcy and an automatic stay has been issued. This will also protect any of your co-signers from being subject to creditor phone calls and attempts to collect your debts.
The Discharge of Your Debts
No matter which form of bankruptcy you file, once your debts have been repaid and you’ve followed the terms of your bankruptcy declaration, any remaining debts will be discharged, and you’ll officially be debt-free. At this point, your creditors will no longer be able to seek your debts as they’ve either been repaid or discharged.
If you continue to receive calls from a creditor after your debts have been paid or discharged, a qualified bankruptcy lawyer can help.
Speak With an Indiana Bankruptcy Lawyer
If you have further questions about filing for bankruptcy in Indiana, or if you’re interested in declaring for bankruptcy but aren’t sure what your next steps should be, reach out to an experienced Indiana bankruptcy lawyer at Rowdy G. Williams Law Firm today.
You can schedule your initial case review today by giving our office a call at 1-812-232-7400 or by filling out the brief contact form located at the bottom of this page.