Constant calls from creditors can turn everyday life into a source of stress and anxiety. These calls can disrupt your workday, strain personal relationships, and make it difficult to focus on getting back on your feet financially. Fortunately, filing for bankruptcy can offer immediate relief from creditor harassment.

At Kenneth C. Rannick P.C., we help individuals in Chattanooga understand how bankruptcy can put a stop to collection calls—and give them a path toward financial stability.

How Bankruptcy Stops Creditor Harassment

When you file for bankruptcy, the court issues an automatic stay. This is a powerful legal order that prohibits most creditors from continuing their collection efforts. That means:

• Creditors must stop calling you
• Lawsuits are generally put on hold
• Wage garnishments must stop
• Repossession or foreclosure efforts must pause

The automatic stay applies as soon as your bankruptcy petition is filed, whether you’re filing Chapter 7 or Chapter 13. Violating the stay can have serious legal consequences for creditors.

What Types of Debt Are Covered?

Most types of unsecured debts—like credit card balances, medical bills, and personal loans—are covered by the automatic stay. Secured debts like a mortgage or car loan may also be affected, especially if you're filing Chapter 13 and proposing a repayment plan. In both types of cases, bankruptcy provides a structured way to address your debts and regain control.

What If Creditors Keep Calling After Filing?

Once your creditors are notified of your bankruptcy filing (which typically happens quickly), they are legally required to stop all collection activity. If they continue to call or harass you, they may be in violation of the automatic stay and could face penalties. Our office helps clients in Chattanooga hold creditors accountable for these violations.

You Don’t Have to Live in Fear of the Phone

If collection calls are dominating your life, bankruptcy may be the step you need to protect your peace of mind. At Kenneth C. Rannick P.C., we can review your situation and help you understand if bankruptcy is the right option for stopping creditor harassment and getting a fresh start.