Will Bankruptcy End Creditor Harassment?

When you owe money to your creditors, you may realize that you are frequently getting contacted for payment. Sometimes, it may seem as though you are fielding or trying to avoid calls on a constant basis. These calls can start to become quite annoying and they can reach the point of harassment. If you are in debt and getting bombarded with creditor calls, you may wonder whether bankruptcy will stop creditor harassment. 

What is Creditor Harassment?

When you owe money to a creditor, they have the right to try to collect what they are owed. However, creditors cannot harass you or use illegal methods to contact you, even in the process of attempting to collect a debt. Calling too frequently, calling late at night, or calling multiple times a day may be considered harassing. There can be a fine line between contacting you to collect a debt and harassment. Luckily, there are laws in place to protect consumers against harassment by creditors.

Fair Debt Collection Practices Act

The Fair Debt Collection Practices Act (FDCPA) is legislation that protects consumers against unfair collection practices. The act defines legal behavior for creditors as well as harassing behavior that is not allowed. Creditor calls must be made only during the hours of 8 am to 9 pm, and they cannot contact you at work. Creditors cannot use threats or false statements and cannot use profanity. Creditors are not allowed to call you frequently with the intent to annoy, and they cannot publish a list of debtors. 

Bankruptcy Provides an Automatic Stay

Immediately upon filing for bankruptcy, the law provides you with an automatic stay. An automatic stay is a court order that effectively stops creditor harassment during bankruptcy. The automatic stay keeps creditors from making demand phone calls and from sending threatening letters. During bankruptcy, a creditor cannot repossess your property, such as your car or other assets. A creditor cannot garnish your wages and a stay stops any current wage garnishment that is in effect. It also may protect you from foreclosure of your home. 

Bankruptcy Can Reduce Stress

If you are constantly under a barrage from creditors to whom you owe money, you may feel extremely stressed out and under pressure. Filing bankruptcy offers a buffer that gives you time to stop worrying about your debt while you focus on resolving your financial situation. You may immediately feel a weight lifted from you when you file bankruptcy. Finally, you can relax and know that you will not be receiving continual calls from creditors. The reprise is in place during the bankruptcy process. During that time, you will be able to resolve your debts either through a payment plan or through liquidation. 

Talk to a Bankruptcy Attorney

One of the best places to begin the bankruptcy process is with a consultation with an experienced bankruptcy attorney. Your lawyer will review the details of your financial issues and help give you options so you can decide how to proceed. While you won’t want to use bankruptcy only as a way to stop creditors from contacting you, it is a good choice for many people who are facing serious financial problems. Contact our legal team at Adam Law Group at (904) 694-5022 to schedule a consultation.