Creditor harassment is a major reason people seek bankruptcy assistance. Phone calls at home, work, threatening letters, lawsuits, garnishments, and bank seizures can make your life more difficult than it already is. When the creditor harassment is too much, call an experienced bankruptcy attorney and get some relief! Once you file your bankruptcy petition, all creditor harassment must stop immediately.
The Fair Debt Collections Practices Act (FDCPA) is a federal law that protects consumers from creditor harassment. Part of this law prohibits third party collectors from directly contacting you after you have retained an attorney to deal with your debt, which includes a bankruptcy attorney. An original creditor, the one you aculatty borrowed money from, is not a “third party collector” and does not fall under the FDCPA. This includes: Capital One, Bank of America, Chase, Synchrony Bank, as well as your local banks and many more. A collection agency or an attorney hired by the bank your borrowed money from is a third party collector, and cannot continue to call or write you. Third party collectors must call your attorney, although any legal action can continue until you file your bankruptcy case.
Creditor harassment could continue even after you hire a bankruptcy attorney. The likely reason for this is that the creditor has not received any information that changes your status. Letting the creditor know that you have hired an attorney is generally good enough to stop the harassment. Tell the creditor, “I’m filing bankruptcy, call my attorney!” and give the caller your bankruptcy attorney’s name and telephone number. (Our number is 501.891.6000) Original creditors usually stop telephone contact after this for fear of violating the bankruptcy automatic stay. Third party collectors know that by law they can no longer call you.
Once your bankruptcy petition is filed, the clerk of the bankruptcy court will send notices to all of your creditors informing them of the bankruptcy automatic stay. Contact your attorney immediately if you are contacted by a creditor after your bankruptcy case is filed.
Hiring a bankruptcy attorney can provide temporary relief from creditor harassment. Filing bankruptcy and obtaining a discharge of your debts guarantees that you are no longer legally liable for the discharged debts. Any further contact from a discharged creditor violates the federal court order and subjects the creditor to sanctions for contempt of court. If you need this powerful legal protection from creditor harassment, contact an experienced bankruptcy attorney today! If you need help you can text or call.