Stop losing sleep over your tax situation. I'm Darrin Mish — a tax attorney in Tampa who's spent 32 years handling exactly this kind of problem. Here's what you need to know.
Some consumers are forced to file bankruptcy after they have exhausted every option. Creditors will call and try to collect your debt if you do not make timely payments. This can mean numerous calls several times per day from various companies all trying to collect a debt. The numerous calls are very stressful and annoying. Click here to read or watch more IRS Help resources.
Once you file bankruptcy you are protected from creditor debt collection calls by law. The Automatic Stay Law makes it illegal for any creditor to continuously harass a consumer after they have filed bankruptcy. Regardless of the amount of debt you have once it becomes part of your bankruptcy your creditors must refrain from contacting you.
Creditors are not allowed to contact consumers by phone, mail or through a third party representative once the individual has filed for bankruptcy. Creditors are prevented from enforcing liens or taking legal action. This law is a part of the United States legal system and it can be found in Section 362 of the United States Bankruptcy Code.
Section 362 lays out the facts and informs consumers that are immediately protected from all forms of debt once they file bankruptcy. Court personnel have up to ten days to tell your creditor about your bankruptcy petition.
Though you are still protected by law but your creditors may not be aware of your situation immediately. As a good rule of thumb you should contact each of your creditors and inform them about your current situation. For those of you who are pressed for time the automatic stay gives you a little more time to handle your financial problems. The automatic stay provides helps during foreclosure by halting the processing. If your house is on the market or about to be sold it is important that you share your bankruptcy information with your creditor.
Protection from wage garnishments and collection calls are just a few ways that the automatic stay law is beneficial. For those individuals who are being sued by their debtors the automatic stay protects them against this type of legal action. It is important to note that the automatic stay cannot protect consumers involved in certain situations.
The automatic stay guidelines do not protect you from any criminal proceedings or convictions. You should be aware that the IRS does occasionally have the right in certain tax proceedings to contact you for financial information or to collect a debt.
Tampa Bankruptcy Attorney, Darrin T. Mish is the founder of the Tampa Bay Bankruptcy Center,P.A. for almost twenty years, Mr. Mish has been a sealous advocate for debtors throughout the State of Florida. Call For a free consultation at (813) 200-4133 or vist hs website at : Tampa Bankruptcy Pro