The most common creditor calls typically come from credit card companies and third-party collection agencies, especially when payments are late or accounts have gone into default. These collectors often call multiple times a day, seeking payment in full or a negotiated settlement.

Medical debt is another major source of collection calls, particularly after hospital visits or procedures when bills remain unpaid.

Here’s how bankruptcy can help if you’re experiencing harassing creditor calls:

1. Automatic Stay Protection

As soon as you file for bankruptcy (either Chapter 7 or Chapter 13), something called an “automatic stay” goes into effect. This legal protection:

• Immediately stops most creditors from calling, texting, emailing, suing, garnishing wages, or repossessing property.

• Applies to credit card companies, collection agencies, medical bills, payday loans, and other unsecured debts.

2. Peace of Mind

Once your bankruptcy is filed:

• You can refer any collector to your attorney or simply inform them of the filing.

• Continued contact by creditors can be considered a violation of the automatic stay, which you can report to the court.

3. Long-Term Debt Relief

• Chapter 7 can discharge many types of unsecured debt entirely.

• Chapter 13 allows for a structured repayment plan and also stops collections while it’s in effect.

Payday loan collectors are also known for their aggressive tactics, pushing for immediate repayment and often using scare tactics like threats of legal action.

Auto loan and lease lenders also frequently contact borrowers who have missed payments, often warning of impending repossession if the account isn’t brought current.

Mortgage lenders may reach out when homeowners fall behind on payments, aiming to collect arrears or explore alternatives before initiating foreclosure.

These types of calls can become relentless, making it difficult for individuals to feel at peace or regain financial control. Alia Khan can successfully wipe out unsecured debt in a Chapter 7 bankruptcy and help you repair your credit within a year of filing.