Does Bankruptcy in Alabama Stop Collections Harassment from Debt Collectors?

Yes.  All collection attempts by creditors are to stop as soon as your bankruptcy is filed.  When your bankruptcy is filed the "automatic stay" goes into place.  This prohibits debt collectors from making any effort to collect any debt against you.  It stops phone calls, letters, lawsuits, garnishments, foreclosures, and repossessions.  

The automatic stay remains in effect during the pendency of your bankruptcy.  It can be lifted by secured creditors to whom you are collateral to or to secured creditors to whom you were supposed to make payments to during the bankruptcy, but have not.

Although the automatic stay goes into effect immediately when your bankruptcy is filed, in reality creditors will not receive notice from the bankruptcy court for 7 - 10 days.  For this reason you or your attorney should inform creditors who are threatening to take actions such as foreclosure or garnishment that you have filed bankruptcy and provide the creditor with a case number.

Creditors who knowingly violate the automatic stay will be required to reverse any adverse action they took after the automatic stay went into effect (such as foreclosure or repossession) and may be subject to paying fines and debtor's attorney's fees.

If you are being harassed by collections efforts of creditors and debt collectors, contact me by clicking here or another qualified bankruptcy attorney in Alabama.  The initial bankruptcy consultation is free.