What Happens to My Creditors and Bill Collectors Once I File for Bankruptcy?
Once a bankruptcy case is signed, the court stamps a number on it, which is your case number. When I first started studying law (back before everything became electronic), the courts used to stamp that number on a physical document. Nowadays, everything is handled electronically.
The court stamps the words "relief ordered" and "stay in effect." What this means is you have a federal judge ordering your creditors to stop taking collection activities. Those creditors and bill collectors can't call, they can't send letters, they can't do anything to continue to collect from you. This federal judge is ordering them to stop all those attempts to collect payment from you. The federal judge would also order a state judge to stop a lawsuit if that was out there as well.
If you're being harassed by creditors or bill collectors, please give my law firm a call. As a Huntsville-based bankruptcy attorney, my debt solution services are available to individuals and families throughout northern Alabama. Schedule a free, informative consultation today to learn what you can do to keep those creditors at bay.