Hoboken Bankruptcy Attorney » Collection agency

How to get your creditors to stop harrassing you

jweil — Tue, 01 Dec 2009 15:50:42 +0000

: Image by ladybeames via Flickr

One way to get your creditors to stop harassing you is by filing for bankruptcy. But how does filing for bankruptcy stop creditor calls and letters? Through something called the “automatic stay”.

The automatic stay in bankruptcy can be a powerful benefit for debtors who feel that they are being hounded by creditor phone calls and letters. It can prevent further harassment from debt collectors.

After a bankruptcy is filed, creditors must stop attempting to collect on debts as a result of the automatic stay, which takes effect just after filing. Practically speaking, you should wait until creditors receive notice of the filing before they know to stop contacting you.

Or, your lawyer may send out letters of representation to your creditors, which can put a stop to the creditor calls and letters for a while prior to your bankruptcy filing. For example, if the credit card companies are really annoying you, have a talk with your lawyer and see whether letters of representation can be arranged.

Exactly what does the automatic stay protect the debtor from? Debt collection calls, wage garnishment, lawsuits, foreclosure sales, and repossessions.

What types of actions are NOT stayed? Actions regarding family support, such as child support or alimony; criminal prosecutions; and tax assessments or audits.

How long does the automatic stay last? Until the debtor’s bankruptcy discharge comes through or until a creditor asks a judge and successfully gets the automatic stay lifted.

What happens when a creditor violates the automatic stay? Then that creditor may be subject to civil penalties, such as the payment of damages.

If you have a question about bankruptcy, feel free to contact the Hoboken Bankruptcy Attorney at 201-676-0722 or at jweil@jenlawyer.com.

Lawsuit: Debt Collector Harassment Contributed To Man’s Death [Debt Collectors] (consumerist.com)
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Inadequate protection from debt collection law

jweil — Fri, 23 Oct 2009 13:30:40 +0000

: Image via Wikipedia

On October 21, the Government Accountability Office (GAO) released a new report on debt collection abuses and the current state of legal consumer protections against those abuses.

The GAO found that current legal protections for consumers facing abuses by the debt collection industry fall short of actually protecting those consumers. Problems such as excessive phone calls and unauthorized fees still exist. In addition, debt buyers often do not have sufficient information about a debt such that they try to collect the wrong amount or try to collect the debt from the wrong person. And enforcement of the existing Federal consumer protection law is lax.

Sen. Carl Levin is citing the GAO report in his call for the creation of a Consumer Financial Protection Agency. He wants such an agency to enforce the laws, modernize consumer protections to bring them up-to-date with current communications technology, and to monitor compliance with existing law.

The Federal law protecting consumers against debt collection abuses, the Fair Debt Collection Practices Act (FDCPA), was made law in 1977. That law prohibits the disclosure that a communication is being made in an attempt to collect a debt, which creates a problem with the use of answering machines, voice mail, email, faxes, mobile phones, and caller ID. If the Federal Trade Commission (FTC) had rulemaking authority, the report states, it would be easier for the law to keep up with technological changes and to regulate the debt collectors.

Also, the FDCPA does not clarify the account information that should be provided when debt buyer purchases a debt, which creates a problem when attempting to verify the debt. The likelihood of a wrongful lawsuit (on the wrong debt or suing the wrong party) increases.

A Classic Debt Collection Story (bargaineering.com)
When Debt Collectors Violate the FDCPA (bargaineering.com)
Debt Collector On Tape: “I’m Gonna F**** You Up” [Audio] (consumerist.com)
Debt Collectors Inspire The Most Complaints, Say Attorneys General (huffingtonpost.com)

Got a debt collection lawsuit before your bankruptcy is filed? Image by eric731 via Flickr Because of the automatic stay,...

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Got a debt collection lawsuit before your bankruptcy is filed?

jweil — Wed, 16 Sep 2009 19:11:22 +0000

: Image by eric731 via Flickr

Because of the automatic stay, a bankruptcy filing normally stops all lawsuits against you. But for a myriad of reasons, not everyone who is planning to file for bankruptcy can do so right away. If you fall into this category, you especially need to keep an eye on your mailbox for lawsuits so that you can respond to them.

Because if you’ve been sued by a debt collector or creditor for a debt and you are planning to file for Chapter 7 bankruptcy, you should defend against the lawsuit, unless you are planning to file the bankruptcy sooner than they can get a judgment against you.

Why respond to lawsuits? Because it slows them down. Debt collectors and creditors count on a large percentage of the lawsuits they file going unanswered. And when a lawsuit goes unanswered, they can get a judgment against you and possibly (depending on what state you live in) collect on that judgment, which may mean taking money from your bank account or garnishing wages.

Dealing with judgments is just a lot of extra hassle you don’t need when you are on the verge of a bankruptcy. Also, judgments stay on your credit report for a long time.

So don’t just ignore a lawsuit. Talk to an attorney about it. If you’re not working with an attorney, check out the court’s website to see if there are any instructions for responding to lawsuits. Go to the courthouse and speak with a court clerk. Many courts have ways of helping out people who are representing themselves.

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