Automatic Stay
The first relief you will obtain from filing bankruptcy happens immediately after you file, and it’s called the automatic stay. Under the automatic stay, debt collectors cannot attempt to collect the debt by way of phone, letters, or any other method while your bankruptcy case is still pending. The must, instead, contact your bankruptcy lawyer in order to communicate with you about a debt. Additionally, the automatic stay prevents any creditors from repossessing or foreclosing on your property. If they wish to continue attempts to collect the debt, they must go to the bankruptcy court and ask the bankruptcy judge to “life the stay”.
Missing Creditor Notices
Not everyone keeps meticulous records, and it’s a possibility that you may have thrown away mail and letters that you have received from creditors and collection agencies. This is information that your Texas bankruptcy attorney is likely to ask for when collecting all your supporting documents for your bankruptcy filing. If you are missing these notices, don’t fret. While they are nice to have, this shouldn’t hold up your bankruptcy filing as long as you can obtain the name of the collection agency and contact information. This information helps the bankruptcy court notify your creditors once you have filed for bankruptcy.
Rules Creditors Must Follow
After filing for bankruptcy in Houston, the bankruptcy court will set a date for a 341 meeting of creditors, and once this is completed, the court will mail out notices to all creditors listed in your bankruptcy packet. This will advise them of their rights as a creditor, and inform them that they cannot contact you about the debt until the matter is resolved in court. Make sure you keep any correspondence after you file, as creditors could run the risk of fines if they violate the automatic stay. Because of the long-term financial and personal implications of filing bankruptcy, you should always seek the counsel of an experienced Texas bankruptcy attorney before filing.