Bankruptcy Stops Creditor Harassment and Phone Calls

Filing bankruptcy places an automatic stay on any collection activity, court judgments and lawsuits related to your bankruptcy debt. When you file bankruptcy you are provided with a case number, which can be given to creditors calling to try to collect debts.

Once notified and given your case number, creditors are then prohibited from trying to contact you, in an attempt to collect a debt. This provides you will immediate relief from harassment and constant phone calls from your creditors. Both Chapter 7 and Chapter 13 Bankruptcy will provide this level of relief. Once creditors are notified, they will have to contact your attorney with any issues regarding your debt.

Prior to bankruptcy, creditors must follow certain guidelines and are prohibited from performing any of the following actions:

Prohibited Creditor Actions

• Calling outside the hours of 8:00 am - 9:00 pm local time.
• Contacting you after you sent a written request to have contact discontinued. (exceptions: lawsuits, notice of intended legal action, notice of end of collection efforts).
• Causing your phone to ring or engaging you in conversation repeatedly or continuously with the intent to annoy, abuse or harass.
• Contacting you at work after receiving a written request not to do so.
• Contacting you when you're known to be represented by a lawyer.
• Contacting you after you requested verification or validation of a debt and before they mail said verification or validation.
• Misrepresenting themselves or deceiving you to get you to pay.
• Publishing your name/address on a "bad debt" list.
• Attempting to collect more than is justified by your original debts and any contracts you signed.
• Threatening arrest or legal action that isn't permitted by law.
• Using abusive or profane language in communications related to collection efforts.
• Contacting a third party (other than your spouse or attorney) and disclosing details of your debt, or threatening to do so.
• Contacting you in an embarrassing way (i.e. via a postcard) to collect debt.
• Reporting or threatening to report false information on your credit report.

In addition, there are certain behaviors required from Debt Collectors, they are as follows:

Required Creditor Actions

• Identifying themselves in every communication with you as a debt collector and informing you that information gathered will be used to collect a debt
• Informing you of your right to dispute a debt
• Providing the name and address of the original creditor (to whom you originally owed money) within 30 days of receiving the debt-dispute form from you
• Providing verification of the debt if you request such verification
• Filing any legal action in an appropriate venue: where you live or where you signed the original documents associated with the debt

Individual situations will vary, and therefore this list is not exhaustive, but will provide you will a general idea of your rights when dealing with creditors. For your specific situation, please contact Butler Landrum and Pierce today.

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