Believe it or not, when you file for bankruptcy, you are getting bankruptcy protection. The
bankruptcy laws actually help debtors who file for bankruptcy protection get back on their feet again. In the past,
the old bankruptcy laws a long time ago used to favor creditors. However, nowadays, the new bankruptcy laws favor
debtors and actually provide debtors with bankruptcy protection.
What does bankruptcy protection mean?
When people are being sued by creditors and are on the verge of
filing bankruptcy, they often feel like they have committed a terrible crime. Some fear that they
would be put in jail for going bankrupt or filing for bankruptcy. The only time you should worry
about jail sentences is when you fail to pay child support. A judge may order you to go to jail for
failing to pay child support or spousal support. He or she will not order a jail sentence
otherwise. However, there are many creditors and debt collectors that would let you believe that
you will be sent to jail.
It is not true - but they would tell you so to scare you into paying off the debt. Some debt
collectors would even threaten debtors to pay off their debts or they would send the police after them to put them
in jail. It is illegal for these debt collectors to say such things but it does not stop some unscrupulous debt
collectors from using the tactic.
Creditors must leave you alone under bankruptcy protection
Once bankruptcy filing is done, the creditors must instantly leave you alone. The creditors,
under the bankruptcy laws, can no longer try to collect any debts from you and all harassments must immediately
cease. If the debt collectors or creditors do not, then they are violating the Fair Debt Collection Practices Law
as well as the Bankruptcy Laws.