Can I Choose Which Type of Bankruptcy to File?
Many different benefits come with filing for bankruptcy. Namely, this will be the best way for you to stop creditor harassment. Follow along to find out how bankruptcy can be used to stop creditor harassment and how a proficient Rockland County bankruptcy attorney at The Law Offices of Allen A. Kolber, Esq. can help make this possible.
What Are Examples of Creditor Harassment?
If you are behind on your payments for a creditor, or creditors, they may try to contact you to get the money they are owed. However, this contact may turn into harassment rather quickly. Common examples of creditor harassment are as follows:
- A creditor or creditors are repeatedly calling your phone.
- A creditor or creditors are repeatedly calling your phone without telling you who they are.
- A creditor or creditors are repeatedly sending letters to your residential address.
- A creditor or creditors are using obscene language when speaking with you.
- A creditor or creditors are making threats when speaking with you.
- A creditor or creditors are publicly listing your name as someone unable to pay off debts.
You Have Protections Before You Ever File
Filing for bankruptcy is not the only option when you are facing creditor harassment. Federal law governs how a debt collector may behave, and several of the matters listed above are illegal. As such, federal law requires:
- No calls before 8:00 in the morning or after 9:00 at night
- No contact at work once you tell them your employer objects
- No threats, obscene language, or repeated calls meant to annoy
- A written demand that they stop contacting you must be honored, with narrow exceptions
However, you should note that these rules primarily apply to third-party collection agencies, not the original creditor. New York has its own rules that can reach further, so a bank calling you is not always free to do what it likes.
Can Bankruptcy Be Used to Stop Creditor Harassment?
Once you file for bankruptcy, whether it be Chapter 7 bankruptcy or Chapter 13 bankruptcy, an automatic stay takes effect without the court having to order it. More specifically, an automatic stay stops banks and creditors from participating in any collection activities, whether it be as minor as phone calls and letters or as major as bank restraints, foreclosures, repossessions, and lawsuits.
During Chapter 7, the stay runs until your case is discharged, dismissed, or closed, which is typically three to six months. In a Chapter 13 filing, it will continue for the duration of your repayment plan, which can span three to five years, so long as you comply with the terms and conditions.
What Happens When the Stay Ends
This is the part people worry about, and the answer is reassuring. When your case closes, the stay is replaced by the discharge injunction, which is permanent. Any debt wiped out in your case can never be collected again by anyone, in any way. A collector who calls you about a discharged debt years later is not merely being rude; they are in contempt of a federal court order.
If a Creditor Ignores the Stay
Ultimately, the stay is not a request. If a creditor knows about your filing and continues regardless, you are generally eligible to recover actual damages in addition to the costs and attorney fees. The court also retains the discretion to add punitive damages if the conduct warrants them. As such, you should keep all voicemails, letters, and call logs, as this will be the first thing requested by your attorney.
However, you should note that you are required to attend the meeting of creditors. In this meeting, you will answer questions under oath from your bankruptcy trustee about the information in your case. While creditors may attend and ask questions, most do not. This also functions as an examination, rather than a negotiation.
Contact an Experienced New York Bankruptcy Attorney
In the end, an automatic stay will allow you to focus on restructuring your finances and building a repayment plan that works best for your current financial situation, all while the worry of being harassed is lifted off your shoulders. So, if you are ready to put a stop to creditor harassment, reach out to a talented Rockland County bankruptcy attorney at the Law Offices of Allen A. Kolber, Esq. We will do everything in our power to protect you from creditors, so contact us today.
