The Automatic Stay
Many people who are considering bankruptcy get frequent calls and letters from creditors and collection agencies. However, as soon you file your petition, you’ll be protected by an automatic stay. The automatic stay acts as a kind of restraining order, which prevents creditors from continuing to contact you, your family or your employer throughout the bankruptcy proceedings. Debt collectors are constrained by the Fair Debt Collection Practices Act, or FDCPA, which outlines the regulations that define consumer rights, the way debt collectors can operate and how penalties and violations are addressed.