If you are struggling with debt, you may be facing constant calls, letters, emails, or even visits from your creditors or debt collectors. These actions can be stressful, annoying, and sometimes even illegal. Creditor harassment is a serious issue that can affect your mental health, your personal life, and your financial situation. Fortunately, there are ways to stop creditors from harassing you, and one of them is hiring a bankruptcy attorney.
What is Creditor Harassment?
Creditor harassment is any abusive, deceptive, or unfair conduct by a creditor or a debt collector to attempt to collect a debt. Some examples of creditor harassment are:
- Calling you repeatedly or at unreasonable hours
- Threatening you with violence, arrest, or legal action
- Using profane or abusive language
- Lying about the amount or status of your debt
- Contacting your employer, family, friends, or neighbors about your debt
- Failing to identify themselves as a creditor or a debt collector
- Ignoring your requests to stop contacting you
Creditor harassment is not only annoying, but also illegal. The Fair Debt Collection Practices Act (FDCPA) is a federal law that protects consumers from abusive debt collection practices. The FDCPA sets rules and limits on how creditors and debt collectors can contact you and what they can say or do. If a creditor or a debt collector violates the FDCPA, you can sue them for damages and attorney fees.
How Can Bankruptcy Stop Creditor Harassment?
One of the benefits of filing for bankruptcy is that it can stop creditor harassment immediately. When you file for bankruptcy with help of Ware Law Firm, an automatic stay goes into effect. The automatic stay is a court order that prohibits creditors and debt collectors from taking any action to collect your debts. This means that they cannot call you, write to you, sue you, garnish your wages, repossess your property, or foreclose on your home.
The automatic stay lasts until your bankruptcy case is closed or dismissed, or until the court lifts the stay for a specific creditor. If a creditor or a debt collector violates the automatic stay, you can report them to the court and ask for sanctions.
What Types of Bankruptcy Can You File?
There are two main types of bankruptcy that individuals can file: Chapter 7 and Chapter 13. Both types of bankruptcy can stop creditor harassment, but they have different requirements and outcomes.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy is also known as liquidation bankruptcy. In Chapter 7 bankruptcy, you can discharge most of your unsecured debts, such as credit card debt, medical bills, personal loans, and payday loans. To qualify for Chapter 7 bankruptcy, you have to pass a means test that compares your income and expenses to the median income and expenses of your state.
In Chapter 7 bankruptcy, a trustee is appointed to sell your nonexempt assets and distribute the proceeds to your creditors. Exempt assets are assets that you can keep under federal or state law, such as your home equity, car equity, retirement accounts, household goods, clothing, and jewelry. The amount and type of exemptions vary by state.
Chapter 7 bankruptcy typically takes three to six months to complete. Once your case is closed, you will receive a discharge order that wipes out your eligible debts and releases you from any liability.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy is also known as reorganization bankruptcy. In Chapter 13 bankruptcy, you can keep all of your assets and pay back some or all of your debts through a repayment plan. The repayment plan lasts three to five years and is based on your income and expenses. You have to pay at least as much as your creditors would receive if you filed for Chapter 7 bankruptcy.
To qualify for Chapter 13 bankruptcy, you have to meet certain criteria:
- Your secured debts (such as mortgage or car loan) cannot exceed $1,257,850
- Your unsecured debts (such as credit card or medical bill) cannot exceed $419,275
- You have to be current on your income tax filings
- You have to have sufficient income to make the plan payments
In Chapter 13 bankruptcy, a trustee is appointed to oversee your case and collect and distribute your plan payments to your creditors. You have to make regular payments to the trustee every month until the end of your plan.
Chapter 13 bankruptcy typically takes three to five years to complete. Once you finish making all of your plan payments, you will receive a discharge order that wipes out any remaining unsecured debts and releases you from any liability.
How Can a Bankruptcy Attorney Help You?
Filing for bankruptcy can be a complex and daunting process. There are many rules, forms, documents, and deadlines that you have to follow. A mistake or omission can result in your case being dismissed or your debts being denied discharge.
A bankruptcy attorney can help you with every step of the bankruptcy process, such as:
- Evaluating your financial situation and advising you on the best option for your case
- Preparing and filing your bankruptcy petition and schedules
- Representing you at the meeting of creditors and any court hearings
- Negotiating with your creditors and the trustee
- Protecting your rights and interests throughout the case
- Answering your questions and addressing your concerns
A bankruptcy attorney can also help you stop creditor harassment by:
- Informing your creditors and debt collectors of your bankruptcy filing and the automatic stay
- Sending cease and desist letters to your creditors and debt collectors
- Reporting any violations of the FDCPA or the automatic stay to the court
- Suing any creditor or debt collector who violates the FDCPA or the automatic stay
If you are tired of dealing with creditor harassment, bankruptcy may be a solution for you. Bankruptcy can stop creditor harassment immediately and give you a fresh start financially. However, bankruptcy is not a decision to be taken lightly according to Ware Law Firm in Mississipp. It has serious consequences for your credit score, your future borrowing ability, and your personal reputation.
Therefore, it is advisable to consult with a bankruptcy attorney i before you file for bankruptcy. A bankruptcy attorney can help you understand the pros and cons of bankruptcy, guide you through the process, and protect your rights and interests.
