Tag Archives: Collection agency

How to get your creditors to stop harrassing you

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Stop Sign
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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.

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Inadequate protection from debt collection law

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Carl Levin
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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.

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Got a debt collection lawsuit before your bankruptcy is filed?

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Household Debt 11Jun09

If you’ve got a debt collection lawsuit against you before you had a chance to file your bankruptcy case, don’t panic.

A bankruptcy filing normally stops all lawsuits against you. But not everyone who is planning to file for bankruptcy can do so right away to stop the debt collection lawsuits.

 

If you’ve been sued by a debt collector, share the details of the debt collection lawsuit with your bankruptcy attorney. Listen to their recommendation. The course of action they recommend will depend on the type of debt-collection lawsuit and on the planned timing of your bankruptcy.

In New Jersey, it might be OK to ignore the typical debt collection lawsuit if you’re going to file the bankruptcy relatively soon anyway. It will take a little while for the debt collector to get a judgment against you and then to get the court to order a bank levy or a wage garnishment. Your bankruptcy attorney can use this time to their advantage to prepare your case. Make sure you get everything that your attorney needs to them as soon as possible, since the longer you wait, the higher the risk that debt collectors could get at your money.

If you’ve got a debt collection lawsuit against you, it might be time to speak with a bankruptcy attorney about your options. Schedule a phone appointment with attorney Jennifer Weil by calling (201) 676-0722.