Entities — whether they’re an individual or an organization — free themselves from debt by declaring bankruptcy. While the legal processes surrounding Fairfax bankruptcy takes place, creditors are not allowed to collect debts. Unfortunately, however, creditor harassment remains prevalent — during and even after the bankruptcy case has been resolved.
In this article, we’re discussing your rights as a debtor as well as tips on how to address creditor harassment.
Prohibitions in Debt Collection
In the United States, the Fair Debt Collection Practices Act (FDCPA) states how creditors ought to get repayment. When you loan, it’s important to know what are the prohibitions when it comes to debt collection, which include:
Demanding for unjustified amounts
Deceiving or misrepresenting
Using abusive and profane language
Calling during unreasonable hours
Calling numerous times with the intent to annoy
Communicating after filing bankruptcy
Publishing the debtor’s name or address on a “bad debt” list
The “Automatic Stay”
Once you file for Fairfax bankruptcy, one of the most important things you need to know is that the so-called “automatic stay” becomes effective. Under this privilege, creditors are not allowed to the following:
Call or send your texts, emails, and/or letters
File (or continue) a lawsuit
Repossess your collateral
Place a lien on your property
Foreclose your home
Any other similar activities
The goal of an automatic stay is to prevent the filers from the possible harassment of their creditors. Creditors, however, can seek approval from the court to be able to contact you.
Once you have successfully filed bankruptcy, expect to receive a debt discharge from the court. This absolves you from being personally liable for most (if not all) of your debts. If you are being harassed by creditors even after you’ve received the discharge, bear in mind that these creditors can be penalized.
Addressing Creditor Harassment
Filing Fairfax bankruptcy gives entities with debt to start afresh. Nonetheless, there are still cases wherein those that have successfully filed theirs still experience creditor harassment. Therefore, it’s vital to know how to properly address such a situation.
Inform them about your bankruptcy. Though it’s highly likely that they already know about your bankruptcy, it’s still wise to explain that you’ve already filed for bankruptcy and that you’ve already received a debt discharge. Most creditors stop getting in touch with their consumers once they receive this information.
Document their acts of harassment. If the harassment still persists, it’s important that you keep a record of those who do such an act to you. Apart from their names, document and write down what they say to you whenever they contact you. This can be used as proof once you decide to take legal actions.
Know your rights and take your creditors to court. When taking legal actions against creditor harassment, you’ll again need expert legal assistance (preferably from your initial bankruptcy lawyer). Know that creditor harassment is a violation of the law, hence anyone who does it can be penalized and taken to court. You can even receive compensation for the emotional pain you’ve suffered because of their harassment.
Bolger Law Firm is your partner if you need experts who can guide you through the process of Fairfax bankruptcy. Contact us today!