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Debt Collectors

If you’re overburdened financially, chances are you’ve had unpleasant contact with debt collectors. What many struggling Americans don’t know is that filing for bankruptcy can silence debt collectors by legally preventing them from making contact with the filer.

Your Rights with Debt Collectors

It’s important to know that, thanks to the Fair Debt Collection Practices Act (FDCPA), you have rights with debt collectors. That’s right: you are legally entitled to be treated fairly and respectfully by the people trying to get money from you.

Some of the behaviors that are explicitly prohibited by the FDCPA include these:

Harassment: Specifically, debt collectors are prohibited from

• Threatening violence or harm
• Yelling or using profanity
• Publishing a “bad debt” list with your name
• Repeatedly calling your phone to annoy you.

False statements: Collectors cannot lie in order to collect a debt, which means they cannot:

•  Pretend to be a lawyer or government representative
•  Lie about how much money you owe
•  Indicate falsely that you’ve committed a crime
• Otherwise mislead you about your responsibilities for repaying your debt

Lies about consequences: Debt collectors are legally prohibited from saying

• That you’ll be arrested if you don’t pay your debts
• That they’ll garnish your wages or repossess your property if they have no right to do so
• That they’ll take legal action against you if they have no right to

Misrepresentation: Debt collectors cannot:

• Give you a false company name
  
• Report incorrect information about you to a credit reporting agency
• Send phony government documents to you

Unfair practices: This clause prohibits debt collectors from

• Contacting you outside the hours of 8 a.m. and 9 p.m.
• Trying to collect fees or interest your debt didn’t actually accrue
• Depositing a post-dated check early
• Contacting you by embarrassing media
• Taking or threatening to take your property (unless it’s legal for them to do so)

What Happens to Debt Collectors When I File Bankruptcy?

If you decide that you want to get a fresh financial start through a bankruptcy filing, you can expect contact from debt collectors to stop. That’s because when you file a bankruptcy petition, something called the automatic stay takes place.

• Automatic Stay: This is a legal stay that prevents creditors from contacting you and stops all collection action (including mortgage foreclosure and repossession) during your bankruptcy case. When a debt collector has been informed that you have filed bankruptcy, he or she cannot legally contact you any more.
• Duration of the Stay: The automatic stay remains in effect for the duration of your bankruptcy case. Chapter 7 cases tend to be discharged within a few months, and Chapter 13 cases tend to last between three and five years.

Silence Creditors with a Bankruptcy Filing

If you’re ready to end the stress of constant worry and stress of dealing with debt collectors, take a moment now to fill out the form to get your free consultation with a local bankruptcy attorney. Get started on the road to debt relief today.