Man talking with creditor at a desk

How Bankruptcy Can Stop Creditors

When someone falls behind on their debts, their creditors and lenders may attempt to contact them about repayment. Although this in and of itself is legal, creditors do have a history of overstepping their bounds while seeking compensation. Our California creditor harassment and abuse team outlines how bankruptcy can put an end to creditor wrongdoing below.

What Is Creditor Abuse?

No matter how much debt you may owe to a creditor or lender, there are certain lines they cannot cross. One of the most noticeable types of harassment is receiving non-stop calls. Sometimes, creditors will have your phone ringing for up to thirty minutes just to get you to pick it up.

Creditors are also not allowed to threaten you with any type of physical harm or obscene language, nor are they allowed to threaten you with jail time to scare you into paying.

If one of your creditors attempts to contact you at your place of employment by calling or sending letters, this is also considered harassment.

Other forms of harassment include:

  • Attempting to contact you early in the morning or very late at night
  • Lying about the amount you owe
  • Adding illegal interest or additional penalties
  • Discussing your debt with anyone other than you or your attorney

Halting Creditors

It may be easy to know when your creditors are harassing you, but it can be harder to find out how you can put a stop to the abuse.

One way to halt creditors is to file a suit against them directly for their actions. If your lawsuit is successful, you are entitled to compensation for any damages caused by your creditor. This can include:

  • Statutory damages up to $1,000
  • Court fees
  • Attorney Costs

These lawsuits can be handled in state or federal courts, however, the Rosenthal FDCPA offers more consumer protection than its federal equivalent.

The other main form of protection from creditors comes from the bankruptcy process. Immediately when the bankruptcy papers are filed, something called “automatic stay” is put in place. This makes any action by a creditor to contact you or collect on your debts completely illegal, opening them to a lawsuit.

Contact Our Los Angeles Bankruptcy Team Today

We understand the mental and emotional toll that a barrage of creditor calls can take. We are committed to discovering the solutions you need to find financial independence.

If you are looking for ways to get debt-free, don’t hesitate to contact us today through our website or give us a call at (818) 805-1758 to schedule your free consultation.