Can I Stop Creditor Harassment by Filing for Bankruptcy?

 Posted on June 05, 2023 in Bankruptcy

Being in debt is a stressful situation, especially for those who have encountered financial difficulties that have affected their ability to pay what is owed while covering other ongoing expenses. If you are in this situation, you may be dealing with constant calls, letters, and threats from creditors and collection agencies, and you may feel helpless and overwhelmed as you attempt to deal with your financial issues and address your family's needs. Fortunately, there are legal measures you can take to stop creditor harassment, and in some cases, filing for bankruptcy may allow you to eliminate some or all of your debts.

Your Rights Under the Fair Debt Collection Practices Act

The Fair Debt Collection Practices Act (FDCPA) is a federal law that regulates how creditors can contact and communicate with debtors. Under this law, you are protected from harassment by creditors, and you can take steps to address any harassing behavior. The FDCPA allows you to:

• Address abusive practices - Creditors are not allowed to use abusive language, call you repeatedly in an annoying manner, make threats of violence, or speak to you without identifying themselves as debt collectors. If creditors take an aggressive or abusive approach when attempting to collect debts, you can file a complaint against them with the Consumer Financial Protection Bureau (CFPB).

• Control communication with creditors - There are certain restrictions that apply to when and how creditors can contact you. They are generally prohibited from calling you at inappropriate times, such as before 8:00 in the morning or after 9:00 in the evening. They cannot contact third parties such as your family members or employer, and you can request that they do not contact you while you are at work. In fact, you can request that a creditor cease contact with you altogether, and they will be required to comply.

• Validate your debt - You have the right to request a validation letter from a creditor that will identify the party who is seeking payments for a debt, specify the total amount owed, and provide information about how to dispute the debt. This can help you determine whether a debt is valid and give you the information you need as you decide how to resolve the debt.

How Creditors Will Be Affected When You File for Bankruptcy

As you deal with creditors, you may be able to negotiate agreements that will allow you to pay off your debts. However, if this will not be possible, you may choose to file for bankruptcy and seek to have your debts discharged. One of the key benefits of bankruptcy is the automatic stay that goes into effect as soon as your bankruptcy petition is filed. This stay will prevent creditors from taking any actions to collect debts, and it will usually remain in effect while your bankruptcy case is ongoing.

With the automatic stay in place, creditors will not be allowed to contact you in any way in an attempt to collect debts. They cannot call you, send you letters, or take other steps to recover the amounts owed. If a creditor has initiated a lawsuit or received a judgment against you, the case will be halted while the automatic stay is in effect. Creditors will also be prevented from proceeding with a foreclosure or repossessing a vehicle or other property.

With the automatic stay in place, you will be able to determine the steps you can take to address your debts. If you are able to complete the bankruptcy process and discharge your debts, you will no longer be obligated to pay the amounts owed. However, if your bankruptcy case is dismissed, or if a creditor is successfully able to have the automatic stay lifted, collection attempts may resume.

Contact Our Charlotte Bankruptcy Attorney

If you are struggling with overwhelming debt and are being harassed by creditors, bankruptcy may provide you with the relief you need. If you are considering filing for bankruptcy, it is important to consult with a qualified Gastonia bankruptcy lawyer who can guide you through the process. At Blossom Law PLLC, we can make sure you understand your options for debt relief, and we will work closely with you to ensure that you can complete the bankruptcy process successfully. Contact our firm at 704-256-7766 to schedule a free consultation.

Sources:

https://www.consumerfinance.gov/ask-cfpb/what-laws-limit-what-debt-collectors-can-say-or-do-en-329/

https://www.investopedia.com/terms/f/fair-debt-collection-practices-act-fdcpa.asp

https://www.nerdwallet.com/article/finance/fair-debt-collection-practices-act