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How the Law Protects You From Creditor Harassment

Those who are considering filing for bankruptcy may be pushed to do so by harassment from creditors. Though creditors are allowed certain contact, there are restrictions on what they can legally do to initiate a payment from you. Understanding your rights may help you fight creditor harassment.

How Can A Creditor Legally Contact Me?

The Fair Debt Collections Practices Act (FDCPA) is a federal law enacted to protect consumers from unfair and abusive behavior by debt collectors. This includes the prohibition of calling numerous times a day and at strange hours, as well as yelling at you or calling you names.

How Do I Stop Creditor Harassment?

The Fair Debt Collection Practices Act (FDCPA) not only sets limits for debt collectors, but also gives consumers the ability to end annoying calls. Under the act, the consumer can write a “Cease Communication Letter” to the debt collection agency asking them to desist calling. The consumer must offer a valid reason, such as the collection agency was abusive or the consumer is unable to pay the debt. Legally, these collection agencies must stop contacting you after receiving this letter, with the exception of a single call to let you know the letter has been received.

You Still Have to Take Care of Your Debt Problem

Though the Cease Communication Letter will stop the calls, it will not remove your debt. The credit company can still sue you for your outstanding debt, which can lead to court-ordered foreclosures or wage garnishment. However, when you file for bankruptcy, the court automatically issues a “stay” which prohibits debt collection, wage garnishment, or contact by collection agencies. Thus, a bankruptcy filing should end harassing creditor calls. The court also informs all creditors of the bankruptcy filing. The court will also issue a letter once your case has been closed, letting the creditors know the verdict. If a creditor continues to harass you, even after you have written a cease communication letter and filed for bankruptcy, the court can hold the creditor in contempt. The court could potentially charge the creditor a fine or order the company to pay damages.

Seek Experienced Legal Help to Stop Harassing Creditors

For those facing bankruptcy, stress levels are already high. The relentless harassment of creditors only heightens this stress. If you are facing harassing creditors and need help, seek the experienced legal counsel of Arizona’s bankruptcy lawyers at the Oswalt Law Group. The Oswalt Law Group will take your individual case and offer advice on bankruptcy options or alternatives. With extensive experience with the Fair Debt Collections Act, the Oswalt Law Group can help you stop harassing phone calls. Contact the Oswalt Law Group today for a free initial consultation.

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