Creditors keep hounding you. It is not that they need to remind you about your financial dire straits. You already know that and plan to address it. Now, as you consider your options such as filing for bankruptcy, you also must deal with these nearly non-stop communiques – phone calls, letters, emails and even texts – from creditors.
Their tactics are borderline bullying and threatening. Creditors are not helping you. They merely annoy and even frighten you. However, you must learn that you have specific legal protections in addressing creditor harassment. And once you file for bankruptcy, that creditor harassment should temporarily stop thanks to what is called an “automatic stay.”
Creditors cannot contact your family or employer
The regular contact from creditors disrupts your task at hand: seeking financial resolution and filing for bankruptcy. Whenever a creditor contacts you, remain composed and verify the debt in question. In addition, document every such incident to support a potential legal claim against the creditor.
In your clash with creditors, you must understand that a federal law called the Fair Debt Collection Practices Act (FDCPA) protects you. It prohibits certain actions performed by debt collectors when attempting to collect debts from you. Here are some of the things that creditors cannot do:
- Force you to make bill payments for more than you actually owe.
- Call you at all hours of the day.
- Call you before 8 a.m. or after 9 p.m.
- Contact your employer
- Contact your family and relatives
- Intimidate you and use profanities to address you
- Threaten to have your arrested or fired from your job
Remember, this federal law protects you all the time, including right even before you file for bankruptcy. Now, once you do file for bankruptcy an automatic stay comes into place. This action prevents creditors from attempting to collect debts from people who have filed for bankruptcy until all court-related actions are finished. Creditors and collection agencies that ignore an automatic stay may be sued by the debtor.
You have enough things on your mind while attempting to get out of a financial hole. You do not need the added burden of constant harassment from creditors. Advocate for yourself, too, by informing the creditors to stop bothering you.