Financial problems cause enough anxiety in a home as it is and the added pressure from creditors and debt collectors makes the situation extremely stressful. Harassing phone calls and threatening notices come all hours of the day and night and their persistence is unbearable. However, filing for bankruptcy offers a solution to this aggravating problem with harassing creditors and debt collectors. The automatic stay gives you protection from harassing phone calls by stopping creditors from calling you.
A Bankruptcy Lawyer Can Help Stop Creditors From Calling
You should first consult with a lawyer to decide if filing is the right path for you. If so, once you file a petition in bankruptcy seeking Chapter 7 or Chapter 13 relief, the court will order an automatic stay. This court order means that all creditors much stop contacting you pending the resolution of your case. Even before your case is filed, the Fair Debt Collection Practices Act protects you from unlawful creditor collection activities and certain extreme harassing phone calls. However, the Fair Debt Collection Practices Act is not a very good deterrent since the penalties for violation of the Act are not too severe. Once you file your case, creditors are not allowed to call you, period. If a creditor continues to call you after your case is filed, they are in violation of the automatic stay, which imposes stiff penalties. Fines and punitive damages may be imposed on the debt collector for violating the stay.
Once a creditor is made aware of the fact that your case has been filed, it must immediately stop any collection efforts. The court will mail all creditors a notice of the filing of your Chapter 7 or Chapter 13 petition, which could take a few weeks. When you get harassing phone calls, you no longer have to run and take cover and have to hide. Instead, you can pick up the phone, inform your creditor that you have filed for bankruptcy, give them the contact information for your bankruptcy lawyer, and demand that they immediately stop calling you. All you need to do is tell them you filed a Chapter 7 or Chapter 13 case and give them your case number so that they can verify your filing. Just telling the debt collectors you have filed will not stop the calls. Once they realize you have filed and have proof through a court notice or case number they can no longer harass you.
Help is Just a Phone Call Away
If you are faced with a difficult financial situation and have considered bankruptcy, call Bankruptcy Legal Center today to discuss your options with a bankruptcy lawyer. We will help stop the harassing phone calls from debt collectors and relieve you of the stress and anxiety surrounding financial problems.