DOES BANKRUPTCY STOP CREDITOR CALLS?
March 17, 2021
No one enjoys getting calls from creditors about delinquent accounts under any circumstances. To make matters worse, some debt collectors use practices that cause additional stress, such as calling during dinner, before 8 a.m., after 9 p.m., calling you at work, and even using obscene or threatening language.
If you are receiving calls and letters from creditors, you may be wondering if filing for bankruptcy can make them stop. Despite giving most people a fresh financial start, filing for Chapter 7 or Chapter 13 bankruptcy is usually a last resort. For many, those harassing calls and letters might be what convinces them to file.
Hundreds of clients in Westminster, Denver, Aurora, Boulder, and Northglenn, Colorado have turned to our team at Garcia & Gonzales, P.C., to help them stop creditor calls and find their best options for relieving their debt. Let us help you move in the right direction.
What is Creditor Harassment?
The federal Fair Debt Collection Practices Act establishes what debt collectors can and cannot do when pursuing debt repayment. They cannot call you repetitively to harass and annoy you. They cannot use profane language or threaten harm. They cannot publish lists of people they are contacting for unpaid debt. They cannot call you without identifying who they are or misrepresent themselves in any way. All of these actions constitute harassment.
Debt collectors are allowed to pursue an unpaid debt by calling, sending letters, or communicating with you via email or text in a reasonable manner. They are only required to stop if you have filed for bankruptcy and included that debt in your filing.
Creditors can apply reasonable pressure for payment or file a lawsuit against you to recover what you owe (plus interest, penalties, and other fees). They can negotiate with you regarding the amount you owe and the terms of repayment. Debt collectors can also sell your debt to someone else who will then pick up the pursuit of the debt.
Will Filing for Bankruptcy Stop Creditor Calls?
The short answer is that filing for bankruptcy will stop calls regarding debt owed to creditors included in the filing. The court will issue a stay order that prohibits continued pursuit by creditors for all debt included in your filing. Filing also prohibits creditors from repossessing your collateral, foreclosing or placing a lien on your real property, or filing a lawsuit against you.
If a creditor continues to contact you, that constitutes harassment. A bankruptcy attorney can handle these situations on your behalf.
Do I Really Need a Bankruptcy Attorney?
You can file for bankruptcy on your own and represent yourself, but there are several benefits to hiring an attorney to represent you. An experienced bankruptcy attorney can:
Guide you through the process of filing for bankruptcy, help you sort through all your debt, and make decisions about which debt to include when you file
Negotiate with creditors and present your case to the court to set up the best possible arrangements for your financial circumstances
Handle any ongoing creditor harassment and collection efforts — even before filing for bankruptcy, your attorney may be able to stop harassing calls by forcing creditors to contact your attorney rather than you
Advise you on vital issues including how to rebuild your credit after bankruptcy, avoid common pitfalls of debt management services, and how to avoid making financial decisions in the future that could put you back into debt
Skilled Bankruptcy Attorneys Serving Westminster, CO
Creditor calls are stressful and overwhelming. So is filing for bankruptcy, even if it does provide a new financial beginning for you. Why not have knowledgeable and compassionate attorneys in your corner so you don’t have to go through any of it alone?
At Garcia & Gonzales, P.C., we stand with hundreds of clients facing financial stress in Westminster and other Colorado communities. We provide experienced legal advice before, during, and in the wake of bankruptcy. We can also show you how to make creditor calls stop so you don’t have to fear answering the phone or opening a letter. If creditors are contacting you for debt you cannot repay, call our office now.