When you are being harassed by a creditor over an owed debt, it can feel like the weight of the world is on your shoulders. The constant contact and fear of action can negatively impact your mental health, leaving you wondering when the other shoe will drop. If this reflects your circumstances, you may feel helpless. However, it’s important to understand your legal options if you are in debt. If you have not considered it, the following blog explores how bankruptcy can help mitigate harassment. You’ll also discover how working with an Orange County attorney can help you reap the benefits of the automatic stay.
What Is Creditor Harassment?
Creditor harassment occurs any time a lender to whom you owe a debt uses unfair or abusive tactics when contacting you about an outstanding debt. The Fair Debt Collections Practices Act (FDCPA) is a set of laws and regulations that dictate how creditors and collectors can interact with consumers. As per the FDCPA, harassment of consumers is prohibited.
Common forms of creditor harassment include, but are not limited to, the following:
- Lying about the amount owed
- Calling repeatedly in a short period
- Publishing your name as a debtor
- Threatening you
- Using vulgar language
- Threatened to have you arrested
- Harassing you at work
- Refusing to verify a debt
How Can Bankruptcy Help?
By filing for bankruptcy, you are granted an automatic stay. This means that all creditors are legally required to cease all collection efforts against you for the duration of your bankruptcy case. All contact, including letters and phone calls, must immediately stop. Similarly, measures like lawsuits are halted. You’ll find that in some cases, this can even stop the foreclosure of your home.
The automatic stay will take effect immediately upon your filing. Its duration will depend on the Chapter of bankruptcy you have filed. If you pursue a Chapter 7 filing, the stay will last the entirety of your case, which is typically around six months. This process will liquidate nonexempt assets to pay off creditors before discharging the remaining eligible debt. If you choose to file Chapter 13, you will be put on a three- to five-year repayment plan.
Should a creditor violate the automatic stay by attempting to continue collection efforts against you, they can face serious consequences. Typically, this includes paying the consumer’s attorney fees and compensating them for any damages inflicted as a result of the continued collection. You should note, however, that in some cases, the creditor may petition the court to lift the stay so they may legally continue pursuing the debt.
When you are the victim of harassment at the hands of a creditor, it can be an incredibly overwhelming matter. However, you should understand that the law is on your side. When you are ready to pursue bankruptcy to get a financial fresh start, the team at the Law Offices of Michael D. Pinsky, P.C., is ready to help. We understand that constant contact can be overwhelming, which is why we are here to fight for you.
