Daniel A. Higson

Will Bankruptcy Stop Debt Collector Harassment?

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Will Bankruptcy Stop Debt Collector Harassment?

Being in debt is stressful enough without the constant calls and pestering of debt collectors. Will Bankruptcy Stop Debt Collector Harassment? A benefit of filing for bankruptcy is that the creditors and debt collectors will be required to stop all collection efforts against you. This is called “automatic stay”, and it is a powerful tool to help you through the bankruptcy process. Automatic stay affects much more than just debt collector calls. Here is a list of some of the other benefits:

Automatic stay does not affect a variety of other issues. The IRS can still audit you, issue tax deficiency notices, and demand payments. Child support and alimony lawsuits will continue unhindered. Criminal proceedings will not be stopped, even if they include debt-related crimes. Certain types of pension loans are unaffected by automatic stay. You may still be evicted from your home if the landlord has already passed judgment. Also, a creditor can get around automatic stay by requesting that the bankruptcy court remove it. This will most likely occur if bankruptcy is filed immediately before a major collection is due, such as the foreclosure of a house.

If all you want to do is stop debt collection calls, there is another option. Under the Fair Debt Collection Practices Act, you can send a written request that you want the collection agency to cease all communication with you. As a result, all agency employees are prohibited from contacting you, except to tell you that collection efforts have ended or that you are about to be sued. However, this solution only helps against debt collectors, not the creditors themselves.

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