Bill collectors have one job, and that is to get money from those who are delinquent on their accounts. Yet, for those who are on the receiving end of credit collections in Knoxville, the feeling is one of getting blood from a stone. If the money was there to pay the bill originally, it would not have had to go into collections. The problem is, collection agencies don’t care about your ability to pay. All they are interested in is getting the money and go as far as breaking the law to get it.
There is one way to stop credit collections in Knoxville for good: filing for bankruptcy. Making the move to file invokes what is known as the automatic stay, another term for a temporary injunction. The automatic stay is binding to the point that you can call your creditors with the file number and tell them to stop calling. Once they are notified, they have to stop contact immediately or find themselves in violation of the stay. In fact, creditors who violate the stay open themselves to a fine of $1,000 plus attorney’s fees for every violation. It’s a case of the shoe is on the other foot.
Bankruptcy is much more than the automatic stay for debt relief, however. It’s also a legal option to eliminate your debt for good. The action is done on the federal level in order to cover all of the collection agencies and creditors that are spread across the United States. Once you are finished with the bankruptcy and have gained a discharge, your debts are gone for good. A creditor can not, at any point, come back to you and request that you pay a debt that you included in your petition. If this were to happen, the creditor is in violation once again, and can be sued for the inconvenience.
It’s best to talk to a lawyer about filing for bankruptcy. Taking this action is not a simple one, and there is a lot of paperwork you have to go through in order to fill out the petition. Having legal help allows you to avoid problems and gives you access to someone who can answer your questions.
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