How to Stop Annoying Collector Calls After a Bankruptcy

Learn How to Deal with Collectors, and Make them Stop Calling After you File for Bankruptcy Protection

Nothing is more annoying to a struggling debtor than bill collector calls. Bill collectors will sometimes call a debtor’s phone number from sun up to sun down, hoping that the debtor will come up with some magical money to pay the bill. Bill collectors must follow certain guidelines when they call a consumer, and if they do not follow these guidelines, a consumer can take certain steps to stop collection calls. Additionally, a debtor can obtain some relief by filing for bankruptcy status. Some chapters of bankruptcy protect the consumer from previous obligations due to inadequate finances.

Stop Collectors From Calling With Bankruptcy

Bankruptcy is a tool a consumer can use to get out of debt and restructure his or her finances. The consumer can try filing alone or obtain the assistance of a bankruptcy attorney in the area. Filing bankruptcy requires a means test and a detailed packet of paperwork that outlines that person’s debts, assets and income. The attorney can help to make sure the paperwork is completed correctly. Judges will sometimes deny a bankruptcy if the paperwork is missing something important. Furthermore, if the debtor does not list all of his or her creditors in the bankruptcy paperwork, the judge may not discharge that debt. While it seems counterproductive to hire an attorney (if you had money, you wouldn’t be in money trouble) it really is in a consumer’s best interest to find an affordable bankruptcy attorney (read these tips) that will work with them.

The moment a consumer hires an attorney to file for bankruptcy, he or she has the ability to stop collection calls. Under a certain Fair Debt act, collectors may not place calls to debtors who are filing for bankruptcy. Therefore, the lawyer can contact all the client’s creditors and notify them of the bankruptcy intent. From that moment forward, creditors who still call are violating a law. Companies who wish to have contact with a debtor after notification of bankruptcy will need to ask the courts for relief from the stay. Proceedings may take a few months to occur, which is why the courts protect the debtor after the initial paperwork filing.

The act also forbids creditors from calling about a debt that the bankruptcy court has discharged. If a consumer has trouble with collector calls after a discharge, he or she can stop collectors from calling by sending them a copy of the discharge papers and requesting that they cease and desist. If the collection calls continue, the debtor may seek assistance from the bankruptcy judge. Sometimes, creditors sell the debts without notifying the new owner of the bankruptcy. Therefore, the new debt owners genuinely do not know that consumer is a protected party.

Once either the debtor or the attorney makes the collection company aware of the person’s protection under the laws, that company must stop making contact with the debtor. If creditor harassment persists, the actions become violations that may end up costing the creditor money.

The consumer can stop collectors from calling by hiring a bankruptcy attorney who can file suit against them. At that point, the judge may rule to have the creditor pay the consumer regular damages and punitive damages. Punitive damages are extra monies the offending party must pay for being extra negligent of the laws. Debtors can receive settlements for thousands of dollars from creditor harassment situations.

A debtors life can become peaceful after a bankruptcy case and collector calls can stop with the right strategy and support. As a last step he consumer may want to obtain credit counseling to learn how to avoid creditor harassment in the future.