There are many different reasons to seek bankruptcy. Getting a fresh financial start and being able to move into the future with control of your finances is obviously the most important thing. In the meantime, however, one of the clear benefits of filing for bankruptcy is that you can use it as a key tool in stopping creditor harassment. Read on to learn more about how it works, why it’s so beneficial, and how you can capitalize on it to achieve your financial goals.

That’s not just a potential result, it’s actually mandated by federal law. How exactly is this possible? Well, the automatic stay kicks in as soon as you file for bankruptcy. Your benefits from this include immediately stopping many of the actions taken against you, including creditor harassment.

This also includes collection agencies trying to repossess your property and lawsuits being filed against you. Therefore, the best way to stop creditor harassment is to file for bankruptcy and let the automatic stay give you the result you’ve been looking for.

However, what qualifies as creditor harassment? There are a variety of specific rules at play here. But, in general, creditor harassment includes increasing your debt or misrepresenting how much is owed, calling you repeatedly, calling you at work, calling you after reasonable weekday hours, or disclosing the debt to third parties.

While these rules are difficult to enforce, once you file for bankruptcy, creditors usually know to back off. Otherwise, you and your legal team can take further action. So, once you file bankruptcy, you can at least clear your plate of excessive phone calls, letters, and threats, while you pursue your financial resolutions. It certainly provides some peace of mind and reduces the stress and discomfort you are facing during this difficult time.

Before filing bankruptcy, be sure to consult with an experienced attorney who will be able to guide you through the process. While stopping creditor harassment is a great advantage to filing for bankruptcy, there are still a number of ups and downs that need to be carefully considered.

There are also different bankruptcy chapters that provide you with different types of financial remedies and also different levels of property retention. It’s not always the right solution, so your personal circumstances and goals certainly come into play, but Automatic Stay’s capabilities to instantly stop creditor harassment is a huge plus.