How to Stop Collection Calls and Harassment with Maryland Bankruptcy

How to Stop Collection Calls and Harassment with Maryland Bankruptcy

Dealing with relentless collection calls can be incredibly stressful and overwhelming. For residents of Maryland who are feeling the pressure of debt, filing for bankruptcy might be the solution. It can provide relief from collection calls and offer a fresh start financially. Here’s how you can stop collection calls and harassment through Maryland bankruptcy.

Understanding Bankruptcy in Maryland

Bankruptcy is a legal process that helps individuals or businesses eliminate or repay their debts under the protection of federal law. In Maryland, two common types of bankruptcy filings for individuals are Chapter 7 and Chapter 13.

Chapter 7 bankruptcy allows for the liquidation of non-exempt assets to pay off creditors, leading to the discharge of most unsecured debts. On the other hand, Chapter 13 bankruptcy enables individuals to create a repayment plan to pay back debts over three to five years while keeping their assets. Both options can stop collection calls effectively.

Automatic Stay: Your Shield Against Collections

Once you file for bankruptcy in Maryland, an automatic stay goes into effect. This legal order halts all collection activities, including phone calls, letters, and lawsuits from creditors. The automatic stay remains in effect until your bankruptcy case is resolved, providing you with invaluable peace of mind during this challenging time.

Steps to File for Bankruptcy

If you're considering bankruptcy to halt collection calls, follow these steps:

  1. Consult a Bankruptcy Attorney: It's crucial to seek legal advice from a qualified attorney who specializes in bankruptcy. They can guide you through the process, help you understand your options, and ensure all paperwork is accurately completed.
  2. Gather Financial Documents: Collect necessary financial documents, such as income statements, tax returns, and a list of debts. This information will be essential for your bankruptcy petition.
  3. Complete Credit Counseling: Before filing for bankruptcy, you must complete a credit counseling course from an approved provider. This is a requirement under federal law.
  4. File Your Bankruptcy Petition: Your attorney will help you prepare and file the bankruptcy petition with the Maryland U.S. Bankruptcy Court. Ensure all required forms are filed accurately and promptly.
  5. Attend the Meeting of Creditors: After filing, you'll be scheduled for a meeting of creditors (341 meeting). During this meeting, you'll answer questions about your finances posed by your creditors and the trustee.

Post-Bankruptcy: Moving Forward

After successfully filing for bankruptcy and completing the process, most dischargeable debts will be wiped clean, leading to a more manageable financial situation. You will experience a significant reduction in collection calls, allowing you to focus on rebuilding your credit and financial health.

Consider Alternative Solutions

While bankruptcy is an effective way to stop collection calls, it may not be the only option. Debt consolidation, negotiation with creditors, or seeking assistance from non-profit credit counseling services can also provide relief. It’s essential to evaluate all available options based on your individual situation.

Conclusion

If collection calls and debt harassment are affecting your quality of life, filing for bankruptcy in Maryland can be a powerful tool for regaining control of your finances. By understanding the bankruptcy process and its protective measures, you can take the necessary steps towards a debt-free future, free from the stress of constant collection calls.