It can happen fast and it can happen to anyone. First, you miss a payment or two. Then the next month, a couple more. Before you know it, you have debt adding up quickly that’s weighing you down. And just when you think it can’t get any worse, the collection calls, letters and notices begin.
Once collection efforts start, it may be time to speak with a bankruptcy attorney and explore your legal options.
Many consumers, however, don’t realize there are protections in place to prevent these creditors from using unethical or aggressive tactics. Read on to learn where you can draw the line, what your rights are, and how bankruptcy may help stop creditor harassment altogether.
What is Creditor Harassment?
Creditors have the right to attempt to collect money owed to them, however, there are certain boundaries they must maintain or you could report them for harassment.
These tactics are prohibited by the Fair Debt Collection Practices Act (FDCPA) and go beyond simple collection measures and instead use methods that cause undue mental anguish in attempts to improve collection efforts.
When Debt Collection Crosses the Line
Incessant or Off-Time Phone Calls
One of those most common types of creditor harassment involves creditors calling over and over again within a short time frame, and/or calling at odd hours like early mornings or late into the evening.
And as communication preferences have shifted, this can also include being spammed with texts by creditors. In some cases, you will even find that you unsubscribe from the texts only to be messaged from a new number, essentially meaning you have no escape from their communication efforts.
Aggressive or Threatening Behavior
At no point in collection efforts should a creditor raise their voice, use foul language, or threaten you physically. Some may even go so far as to lie and say that you’ll be put in jail if you don’t pay by a certain time. While logically you may know that’s not true now, when you’re deeply stressed by your finances and not thinking clearly, it can be easier to fall for some of these tactics because you just want the situation to end.
False Representation
A collector pretending to be someone else, especially someone such as law enforcement, lawyer, or a federal/state government agency is also a form of creditor harassment and is illegal under current laws. If an unlikely event someone ever physically visits your property for collection efforts, always be sure to ask for identification.
Friends, Family, & Work
Some creditors will go so far as to contact your employer, relatives, or even friends in attempts to get you to pay. In many cases the hope is that by shaming you publicly, you’ll be more likely to quickly pay your debts to avoid the embarrassment. This is highly illegal and can (and should) be reported as creditor harassment.
How Can I Stop Creditor Harassment?
There are a couple of ways that you can essentially pause creditor harassment, such as sending a cease and desist letter to the collector or requesting that they provide evidence of the debt owed.
However, the most effective way is to file bankruptcy. Once filed, all collection communication must freeze per federal law in what is known as an “automatic stay.”
Of course, bankruptcy should not be taken lightly. It is best considered when debt is no longer manageable and collection pressure has become overwhelming. Because it can have long-term financial consequences, speak with an experienced bankruptcy attorney before deciding if it is right for you.
Chapter 7 and Chapter 13 Bankruptcy Help in Greater Boston
No one expects to find themselves overwhelmed by debt, but when payments, collection calls, and financial stress become too much to manage, bankruptcy may provide a path forward. Whether Chapter 7 or Chapter 13 is the right option depends on your income, assets, debts, and long-term goals.
Because bankruptcy is a major financial decision, it is important to speak with an experienced attorney before moving forward. Hines Law is a Massachusetts Bankruptcy Firm that helps individuals and families throughout the Greater Boston area understand their debt relief options and take the next step with confidence.
Call Hines Law today to schedule a Free Consultation