Dealing With Debt Collectors? Know What To Do

Law Blog

Are you currently over your head in debt and being harassed by your creditors? Here is what you need to know about your rights.

Are There Rules About What Creditors Can Do?

While creditors are allowed to contact you in order to ask for money, there are rules that they must follow when doing so. They are not allowed to call you late at night, harass you, or threaten you in any way when asking for the money that you owe. If this is happening to you, then you may need to work with a lawyer to file a cease and desist order to prevent them from contacting you. Eventually, your creditor is going to file a lawsuit to get you to pay back the debt.

When Should You File For Bankruptcy? 

If you are to the point where your creditors are filing lawsuits, it may be best to work with a lawyer so that you can start the bankruptcy process. This will allow your unsecured debts to be discharged once the process is finished and prevent creditors from contacting you while the bankruptcy is being approved. 

What Is An Automatic Stay?

Your bankruptcy lawyer will let you know about issuing an automatic stay to your creditors, which is the legal process of preventing creditors from asking about the debts that you owe. If a creditor ignores the automatic stay and continues to contact you, know that you can take legal action against them. It is possible to seek punitive damages for their actions, since they are willingly violating the order. While they may not be happy with your bankruptcy filing, you are well within your rights to do so. 

What Happens If The Bankruptcy Is Denied?

If your request for a bankruptcy has been denied, then your creditors can start to contact you again regarding the debt. Your bankruptcy process of Chapter 13 can also be canceled if you are not making the regular payments per the terms of the bankruptcy agreement. Creditors can then start contacting you again for the debts that you owe as part of that repayment plan, though the debts that are discharged will remain discharged. 

Not sure what to do about the debts that you owe? Reach out to a bankruptcy lawyer in your area for assistance. They can help guide you through the process and deal with the outstanding debts that you do not know how to pay.


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