When you are in debt, you may find yourself extremely overwhelmed with the bills piling up. However, factoring in the constant calls from creditors can add to the stress you’re experiencing. Even worse, some creditors may begin abusing the ability to contact you. This is known as creditor harassment and is prohibited by the Fair Debt Collection Practices Act (FDCPA). As such, you may wish to declare bankruptcy, not only to help you regain control of your finances but also to prevent continued harassment. Continue reading to learn more about this process and discover how a Memphis, TN creditor harassment defense lawyer can help you through this situation.
What Counts as Creditor Harassment Under the Fair Debt Collections Practices Act (FDCPA)
Under federal law, third-party debt collectors, meaning those who buy debts from companies for pennies on the dollar, are prohibited from engaging in certain behaviors. Unfortunately, you’ll find that many debt collectors engage in harassing, abusive, and manipulative tactics in order to recover the funds that they are owed.
Examples of Behavior That May Be Considered Harassment
- Contact you outside of the appropriate hours (8 a.m. to 9 p.m.)
- Misrepresenting themselves as a member of law enforcement or legal representation
- Using abusive or vulgar language
- Repeatedly calling you in a short period of time
- Calling you at your place of employment when you’ve asked them to stop
- Talking to anyone other than you or your attorney about your debt
- Publishing your name as a debtor
- Refusing to identify themselves
Unfortunately, many collectors and creditors use these behaviors as a means to get a debtor to pay faster. It is vital to understand that these practices are unlawful, even if you do owe a valid debt to the collection agency.
How Filing Bankruptcy Stops Creditor Harassment Through the Automatic Stay
If you file for bankruptcy in Memphis, your filing will typically proceed through the Western District of Tennessee. As such, the court will issue an automatic stay. Essentially, this means that all collection efforts against you, including legal action and contact, must immediately stop. This is true regardless of what bankruptcy chapter you have filed.
What the Automatic Stay Stops Immediately
- Phone calls and letters
- Wage garnishment
- Foreclosures
- Civil lawsuits and judgments
- Repossession attempts
- Levies on your bank account
You should note that, if your property was repossessed prior to your bankruptcy filing, the automatic stay may stop the sale or disposal of the property, but it will not automatically result in the return of your property.
In the event that you file for bankruptcy, all collectors who wish to contact you must instead contact your attorney.
Does the Automatic Stay Apply to All Debts?
If you are considering filing for bankruptcy in Memphis, it’s important to understand that not all debts will have protections under the automatic stay. Some debts, due to their nature, are exempt, and collection efforts may continue even after bankruptcy has been filed.
Debts Typically Covered Under the Automatic Stay
- Credit card debts
- Personal loans
- Medical bills
- Payday loans
- Utility shut-off threats
Debts That May Not Be Fully Protected
As mentioned, some debts will not be protected under the automatic stay once you file for bankruptcy in Tennessee. These debts typically include:
- Domestic support obligations (child support and alimony)
- Certain tax debts
- Restitution paid to victims in a criminal case
Working with an attorney is critical, as they can assist you in determining what debts are eligible for protection under the automatic stay.
What If Creditors Keep Calling After I File for Bankruptcy?
Should the harassment continue after you’ve filed for bankruptcy, you’ll want to contact your attorney as soon as possible. It does not matter if the behavior is permitted under the FDCPA – any form of communication between a creditor and debtor filing bankruptcy is not permitted.
This is also true if you’ve had debts discharged. Because you are no longer legally obligated to pay the discharged debt, collectors cannot continue to harass you. If this is the case, you should contact your attorney as soon as possible.
What To Do if Creditors Continue Contacting You
In the event that you have filed for bankruptcy and a creditor contacts you, you should take the following steps:
- Inform the creditor that you have declared bankruptcy
- Provide the bankruptcy case number
- Direct all further communication to your attorney
- Keep a log of all communications
- Save any documents, voicemails, or emails sent from the collector
Keeping a detailed record of all contact from collectors after you’ve declared bankruptcy is critical, as you may be able to fight for statutory damages, as it may constitute an FDCPA violation.
FDCPA Rights vs. Bankruptcy Protections: How They Work Together
It’s important to understand that, when interacting with creditors after you’ve filed for bankruptcy, you’ll have protection from the FDCPA and your bankruptcy filing. The FDCPA can help prohibit contact, but bankruptcy will help provide court-ordered protections as needed.
Key Differences Filers Should Understand
- The FDCPA defines creditor harassment, while bankruptcy stops collection activity
- The FDCPA allows you to request that creditors stop contacting you, while bankruptcy requires it
- Violations of the FDCPA may result in statutory damages, while bankruptcy violations can result in court sanctions
Is Bankruptcy Always the Best Solution for Creditor Harassment?
While bankruptcy can be an incredibly beneficial tool for those in considerable debt, it’s important to understand that not all instances of collector harassment will warrant filing for bankruptcy.
Situations Where You May Wish to Consider Alternatives
- Debts that are disputed or incorrect
- Harassment violates the FDCPA, but debt is manageable
- A payment plan may be negotiated
Contact Our Experienced Memphis Bankruptcy Attorneys Today
When you’re in debt, you may not know where to turn. Luckily, the Arnold Law Firm can help you find the best bankruptcy option for your needs while providing relief from constant contact with creditors. Reach out to our office today to learn how we can help you navigate this challenging time.
