Filing for business bankruptcy offers business owners a number of different advantages and one of those advantages is being able to do away with harassing phone calls and collection attempts from creditors. One of the worst parts of owing money is having to deal with the mountains of phone calls and paperwork from creditors trying to collect their money. Such attempts can make trying the process of operating your business quite difficult, not to mention the fact that they can be embarrassing as well. Business bankruptcy laws prevent creditors from continuing to dun you for money once you have filed you business bankruptcy petition. This can be a welcome relief for many business owners who find themselves struggling.

Business bankruptcy laws call for what is known as a ‘stay’ from creditor harassment. This means that creditors will no longer be able to foreclose on your primary residence. In addition, it will also end creditor attempts to take other actions in an attempt to collect money that is owed including calling you at work and at home.

In order to take advantage of such business bankruptcy laws, you must make sure that you do a few things. First, you must file your business bankruptcy petition. An experienced business bankruptcy attorney can help you with this process. It should be noted that the stay will not automatically take effect the moment you file your bankruptcy petition. It does take a little bit of time; usually about fifteen days.
In order for the stay to remain effect, you must also make sure that you comply with all of the rules of your bankruptcy agreement. If you have reached an agreement that will allow you to make payments to your creditors then you must make sure that you meet those payment obligations on time. If you fail to make those timely payments, then the creditor protections that you received through business bankruptcy laws may be withdrawn. This means that you may once again be subjected to creditor harassment.

It must also be understand that the stay against creditor harassment will only apply to certain types of debts. You will not be absolved of certain debts such as child support payments, alimony, student loans and income tax payments when you file for bankruptcy. As a result, the stay does not apply to those debts and you may find that you will still continue to receive collection attempts arising from those debts if they are not paid in a timely fashion.

The best course of action is to develop a realistic repayment plan that will allow you to pay something toward all of your outstanding debts and then make sure that you make those payments on a timely basis. Still, if you find that you are overwhelmed by debt and you are not sure how your business will survive, filing for business bankruptcy can be a good option, particularly given the fact that business bankruptcy laws do provide protection against continued creditor harassment.

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