As a bankruptcy attorney, I often counsel clients and potential clients who are dealing with harassing calls from debt collectors. Many people aren’t aware of what their rights are. Let’s review what debt collectors can and can’t do over the phone.

If you have filed for bankruptcy they can do almost nothing. If a collector calls you after you’ve filed for bankruptcy, you are protected by an automatic stay. This means they can’t do anything to collect on the debt. The first time they call, tell them you have filed bankruptcy and refer them to your bankruptcy attorney. If they continue to call, let your attorney know and they will handle it.

If you have not filed for bankruptcy, then you don’t have the protection of the automatic stay, so your creditors can still send garnishments to your employer, put liens on your house, etc. BUT 3rd party debt collectors do have to follow the rules set in place by the Fair Debt Collection Practices Act. The following are a few regulations debt collectors are supposed to follow when they are trying to receive payments from a debtor:

-They may not call at a time or place that is known to be inconvenient. Typically, this means before 8 AM or after 9 PM. And once you tell them that you can’t receive calls at work, then they’re not supposed to call you there.

-They are not supposed to “harass, oppress, or abuse you including threats of violence, prison, or foul language.” In other words, they can’t threaten to throw you in jail or even swear at you when you’re having a conversation with them.

-They can’t call you over and over in an attempt to annoy you into answering the phone.

-They are supposed to stop attempting to call you if he or she knows you are already represented by a bankruptcy attorney.

-They must stop contacting you once you notify them in writing, but that won’t prevent collection efforts. They can still issue a wage garnishment, bank levy, or put a lien on your home.

The simplest answer is to do your research, and get as much information as you can before you act on the situation. You don’t want to make a decision you later regret simply because you didn’t have the right information on how to handle your situation.

Similar Posts:

Share