Research has proven the link between debt and poor mental health. Few people, if any, can ignore their debts altogether. What usually happens is that the worse their debt situation gets, the more worry and stress it leads to. That, in turn, can make dealing with the situation even harder, as the person is left mentally exhausted and unable to focus on searching for possible solutions.
One thing that can make the situation a lot worse is a constant barrage of emails, letters, calls and even knocks on the door from creditors or those they employ to collect their debts. It’s another stressor that those with debt problems do not need.
An automatic stay buys you a reprieve from this
The moment you file for bankruptcy is the moment the creditors need to stop chasing you. They may be able to resume their efforts later depending on what happens, but for now, the matter is in the hands of the court, and the court expects silence from them. If a creditor has something to say or a request to make, they should make it directly to the bankruptcy court, not you.
This can make it fairer for all creditors
Not only does this buy you some much-needed peace, but it ends the situation where “he who shouts loudest” gains an advantage. If you owe several creditors, the chances are high that you would pay the one who makes more noise or is more aggressive toward you first, before any others. This leaves more respectful creditors at a disadvantage. Once the court takes control of the process, it leaves all the creditors on a level playing field.
Learning more about your legal rights during bankruptcy can help you call out any creditors who fail to abide by the law.