Harassment by creditors might seem to be a far away possibility to many but you would be surprised at the actual statistics. Most debtors do go through some kind of creditor harassment. Consider yourself lucky if this hasn’t yet happened to you.
According to the law, using obscene language, making persistent calls, threatening violence, intent to irritate, calling home at odd hours, calling up at work place, calling up friends and relatives etc are all acts that can be considered as harassment.
Stopping Creditor Harassment
To begin with, you can try the peaceful method and start a dialogue with creditor explaining your predicament and reasons for default. You can further, request for payment extensions or any other alternate arrangements. Communication can bring up many ideas which could place you in a more comfortable position.
All this is easier said than done, reason and logic cannot always win the battle. Stereotypes debt collectors are unreasonable, unfair and even harsh. Hence the most plausible option that any debtor can opt for is to file for bankruptcy. This is the best way to put a stop to all those calls from your creditor.
As soon as a bankruptcy is filed for (irrespective of chapter), court issues a stay on all creditors and bill creditors collection efforts. Bankruptcy Court and your bankruptcy attorney would inform all your creditors regarding your bankruptcy through mail. This could take around a week or so. Hence you can also go ahead and inform your creditors of the bankruptcy filing.
The stay order is an important tool in the process of bankruptcy where in debtors can heave a sigh of relief since no creditor can contact them with collection motives. The Fair Debt Collection Practices Act regulates harassment by creditors. And in cases where creditors continue with harassment in spite of having been notified about your bankruptcy filing, they can be penalized and fined. Actually, once you file for insolvency, all calls and contacts must go through your bankruptcy attorney.
The law provides for protection of people who file for bankruptcy and see to it that they are not troubled by creditors, which could have been the main reason for adopting bankruptcy filing as a course of action. Your bankruptcy attorney is the best guide under the circumstances and he would be competent enough to tackle issues of creditor harassments. You need to reveal all such instances and allow your legal counsel to deal with the situation within the frames of bankruptcy law.
Mostly, all creditors are called for a meeting and specifics regarding discharge of their debts are detailed. Unless a creditor objects, things go on smoothly and they are all paid back.
Call a skilled Savannah bankruptcy lawyer if you are considering bankruptcy.