Do Bankruptcy Attorneys in Tampa Help You Avoid Creditor Lawsuits?
Struggling financially is one of the most difficult situations a person can face. It gets much worse when you are notified that a creditor has taken legal action against you. But is there something bankruptcy attorneys Tampa can help you do to avoid this situation?
One of the best things that happens one you begin working with a bankruptcy attorney is that something known as an automatic stay goes into effect. This the limitation the court sets on what creditors can do to people who have decided to file for bankruptcy. It means that all collection efforts must stop immediately and cannot resume without the court’s permission. There are some situations in which a creditor could again be granted the right to collect a debt, but this is rare. Most of the time, an automatic stay remains in place throughout the life of your bankruptcy until your debts are discharged.
What if you’ve already received notice that a creditor is considering a lawsuit?
In most cases, you’ll be notified or served with paperwork regarding a lawsuit. This means the creditor has contacted the court, but it doesn’t mean that fixing the problem is no longer possible. Bankruptcy attorneys in Tampa help people who have been served with notification of a creditor lawsuit all the time. For some, the solution it to set up a payment plan to deal with that debt without involving the court. Some bill collectors are willing to do this.
If this isn’t possible, either because the creditor is unwilling or because you know you cannot afford the payments, bankruptcy attorneys in Tampa can help you take a different approach. Filing for bankruptcy means the creditor(s) won’t be able to contact you and any legal action will need to stop, or at least be put on hold.