Communicating with creditors is perhaps the most stressful aspect of financial hardship. While there are legal protections against creditor harassment, many creditors will push these boundaries. Even when creditors operate within the law, discussions about debt can trigger significant anxiety. Dealing with creditors rarely leaves individuals feeling positive about their situation, and this unpleasant contact is often a driving factor in considering bankruptcy. If you’re struggling with unmanageable debt, remember that there are legal solutions available to help you find relief. Please continue reading as we explore how bankruptcy can help mitigate creditor harassment and how our seasoned Gillette bankruptcy lawyers can help you reap the full benefits of the automatic stay.

What is Creditor Harassment?

Creditor harassment occurs when a lender uses abusive, unfair, or deceptive tactics when attempting to collect on a debt. These tactics can cause significant emotional distress and economic burden for the debtor. The Fair Debt Collection Practices Act (FDCPA) is a federal law that safeguards consumers from unfair debt collection practices. It outlines permissible interactions between creditors and consumers. Essentially, it prohibits creditors from using unconscionable means to collect or attempt to collect any debt. Creditor harassment can take many forms. Examples of creditor harassment include, but are by no means limited to the following:

  • Excessive phone calls
  • Threats and intimidation
  • Making false claims
  • Using obscene language
  • Refuse to verify a debt
  • Contacting third-parties
  • Public humiliation
  • Pressuring you to sell your home or take out more debt

If you’re experiencing creditor harassment, it’s imperative to know your rights and take the necessary steps to protect yourself. Document all interactions with the creditor and details of the conversation. It’s advisable to consult a Gillette bankruptcy lawyer who can help you explore your options and guide you through the process of filing a complaint or lawsuit against the creditor.

How Can Bankruptcy Help?

When you file for bankruptcy, an automatic stay will go into effect. This is one of the most powerful protections available to those filing for bankruptcy. This is because it stops creditors from contacting you to collect debts. It puts a halt to most collection efforts. This includes harassing phone calls, sending letters, filing lawsuits, or garnishing wages, among other measures. The primary goal of this order is to provide debtors with the opportunity to regroup and get their finances in order without the constant pressure from creditors looming over their heads.

If a creditor attempts to collect a debt after an automatic stay has been issued, they can face severe penalties, including paying the consumer’s legal fees and damages. However, it’s important to note that a creditor can petition the bankruptcy court to lift the stay so they can legally continue pursuing the debt.

Being harassed by creditors can be an overwhelming experience, but it’s important to remember that you have legal rights. If you’re considering filing for bankruptcy in Wyoming, 307 Bankruptcy can help. Our team understands the stress of contact credit contact and is here to provide the legal support you need.