16 Jan Bankruptcy will stop creditors’ harassment
As soon as you file either Chapter 7 or Chapter 13 bankruptcy, the court issues an automatic stay. This prevents creditors and debt collectors from contacting you, putting a stop to all creditor harassment.
Q. What are the forms of harassment that debt collectors do?
A. The debt collectors’ harassment such as follows:
- Using obscenity, racial slurs or insults
- Sending letters which appear to have come from a court
- Seeking collection fees or interest charges not permitted by your contract or by state law
- Requesting post-dated checks with the intention to prosecute if they bounce
- Filing a lawsuit in courts far from your place of residence
- False representations in association with efforts to collect the debt, including the false claim that the person contacting you is an attorney, falsely claiming to have started a lawsuit, using a false name, or using stationery that is designed to look like an official court or government communication
- Using false claims to collect information about the debtor, such as pretending to be conducting a survey
- Threatening you with arrest if you do not pay the debt
Q. What law protects the consumers from illegal actions of debt collectors?
A. Under the Fair Debt Collection Practices Act, you have the right to sue a debt collector in state or federal court within one year from the date of the violation. If you win, you may recover damages in the amount of any losses you suffered as a result of the violation, plus an additional amount of up to $1,000.00. You may also be able to recover court costs and attorney fees. Generally, the following are the law on debt collection:
- They cannot call you or your home continuously
- They are prohibited from calling your home after specified hours
- They cannot call you at work
- They are not allowed to call your neighbors
If the same debt collector has engaged in unlawful conduct with a number of consumers, it may be possible to find a lawyer who will file a class action lawsuit.
Note: This is not a legal advice. Our office has been helping clients in bankruptcy since June1999.
- Bankruptcy will actually improve your credit within one year because your unsecured debts are discharged. Although the bankruptcy will be in your records for 10 years, not filing bankruptcy will make your credit even worse until most your debts are paid.
- If you are being sued by your creditors, most money judgment can be eliminated in bankruptcy.
- Collection actions continue and you can be sued if you are in debt settlement.
- Chapter 7 will eliminate all unsecured debts. If you are near retirement age, you must eliminate most of your debts.
- Bankruptcy will stop foreclosure actions. If your trustee sale date is 10 days before, you can still file for bankruptcy.
- If your salary is being garnished, you have a court case about debts or you are being harassed by creditors, bankruptcy can stop garnishment, court cases, harassing creditors and eliminate the debt.
- Bankruptcy is cheaper, faster and safer than debt settlement which has no guaranteed success.
- Preserve your health, eliminate stress and live a happy life by eliminating your debts which is the root of all problems.
Crispin Caday Lozano, Esq. is an active member of the State Bar of California, the American Immigration Lawyers Association and San Francisco Trial Lawyers Association. He specializes in immigration law, bankruptcy and personal injury. For free consultation email or call (firstname.lastname@example.org / 1-877-456-9266)