Creditor Harassment and Bankruptcy
If you are late paying your bills you may be inundated with annoying creditor telephone calls. Filing bankruptcy may allow you to end creditor harassment in addition to discharging many types of unsecured debts. Creditor calls, wage garnishments, foreclosures, property repossession, tax liens, levies and lawsuits can potentially be stopped by filing bankruptcy.
How does filing bankruptcy stop creditor harassment? After you file your bankruptcy petition an automatic stay is initiated and a notification is sent to all of your creditors telling them that you have filed bankruptcy and they must cease all communications with you. If you have hired a bankruptcy attorney your creditors may communicate directly with them.
Whether or not you decide to file for bankruptcy protection, it is important to recognize creditor harassment . Illegal creditor actions have been outlined in the Fair Debt Collection Practices Act, 15 USC 1692c(c). If your creditors are not following the laws you have several ways to stop harassment.
- Get written verification of the outstanding debt from each creditor.
- Notify the Federal Trade Commission if your creditors are not following creditor harassment laws (i.e. they are using profanity, threatening you or calling you too early in the morning or too late at night).
- Send a certified letter telling third party debtor collectors to cease calls. If a third party debt collection agency has been hired to collect debt on behalf of your creditor they are supposed to stop calls after receiving this notification letter.
If you are not sure how to handle harassing creditors talk to a bankruptcy lawyer. Bankruptcy lawyers provide a variety of services and can help find the right solution for you.