What are the consequence of filing for bankruptcy protection to avoid harassment from creditors?

It is true that filing for any type of bankruptcy will force creditors to refrain from collection tactics under federal law of the “automatic stay.” This policy is made active immediately upon filing for bankruptcy, stopping the major frustration of creditor’s lawsuits, wage garnishments and telephone communication attempts, in addition to any other methods used to regain debt. Often the source of much debt collection grief is home foreclosures. This process also provides protection for individuals in these cases, but also halting foreclosures. However any past-due payments must be repaid in reasonable period of time.

Though relief from the frustrating activities of debt collectors is very desirable, bankruptcy should not be taken lightly, and should only be filed as a necessity. It will cause detrimental effect to one’s credit score that will stay with them for up to ten years after. Also, if Chapter 7 bankruptcy is granted, the debtor will lose a majority of their property to the process of repayment to their creditors to gain debt cancellations.

Filing bankruptcy to avoid debt collection harassment will bring all the same possible consequences and benefits as filing for any other reason, but may bring cause more consequences if filed for only the specific purpose of debt harassment relief. Debt harassment is a serious crime that should be handled with the aid of legal professionals.