Stop Debt Collections by Filing Bankruptcy
A creditor is not allowed to contact a person who has hired an attorney to represent them regarding the debt. Communications with a represented person is a violation of the Fair Debt Collection Practices Act (FDCPA), which is discussed below.
Filing a bankruptcy will initiate the “automatic stay.” This will immediately stop all pending collection against the person who filed for bankruptcy. Lawsuits will be placed on hold pending the outcome of the bankruptcy. Foreclosures will be stopped pending the outcome of the bankruptcy. Bank levies will become part of the bankruptcy estate and potentially returned to the person who filed bankruptcy. Wage garnishments will stop and money garnished shortly before filing bankruptcy will become part of the bankruptcy estate and potentially returned to the person who filed bankruptcy. Repossession might be reversed or completely stopped.
Stop Debt Collections by Filing Lawsuit for FDCPA Violations
Debt collectors can be overly aggressive and their tactics can be deplorable. The FDCPA was enacted to protect consumers from debt collection harassment. A violation of the FDCPA may subject the debt creditor to monetary damages. A lawsuit for an FDCPA violation carries a potential liability maximum of $1,000 per proceeding.
Common violations include:
- Contacting a person represented by an attorney;
- Failure to disclose the communication is from a debt collector;
- Calling an unreasonable number of times per day or after instructing the collector not to call; and,
- Threatening, profane, foul, or obscene language.
There are other ways to violate the FDCPA. The FDCPA is a federal act, but California has enacted the Rosenthal Act to provide even further protections to its residents.
Contact Our Sacramento Bankruptcy Attorneys
Interested in learning more about how to stop debt collections? Feel free to contact Sacramento bankruptcy attorneys to set up a free initial meeting. Our attorneys walk clients through the entire process. We are also well equipped to handle FDCPA violations.
By: Trevor Carson
*The information provided in this post does not constitute legal advice or opinion. The information is for guidance purposes only. Individual situations vary and you should contact an attorney for a consultation. This post is considered a solicitation and advertisement. The post does not warrant the outcome of any matter. Sacramento Bankruptcy Attorney on the how to stop debt collections.
Sacramento Bankruptcy Resources
United States Bankruptcy Courts – Bankruptcies are filed in federal courts. Here is a link to the federal courts website for bankruptcies.
United States Bankruptcy Court, Eastern District – A link to the bankruptcy court in Sacramento.