Stopping Creditors From Harassing You

The phone rings...and you are overcome with a feeling dread. Is it another creditor calling you again demanding payment?

For many people this is an everyday occurrence. But it doesn't have to be. If you are in financial trouble and there seems to be no way out, bankruptcy may be the answer. Although it may be a difficult decision to come to, filing bankruptcy can put an end to those demanding phone calls from creditors.

Laws in Place to Protect Borrowers

It can be very frustrating not being able to pay back debts. However, many people find themselves in this predicament where they have borrowed more money, or ran up more credit than they can afford to pay back. And once you get behind on bills, the creditors are relentless and call morning, noon and night demanding payment. You may make promises to pay and then find there is just never enough money to make good on those promises. Once your back is against the wall and you are forced to file for bankruptcy, the harassing phone calls should stop.

Before you file for bankruptcy it is important to find out what the bankruptcy laws are when it comes to creditors. The bankruptcy laws were designed to provide protection for you the consumer against the continued harassment from creditors.

According to the bankruptcy laws, after the borrower has filed for bankruptcy the creditors are not allowed to contact the borrower. However, some creditors plead ignorance of the law and keep on calling.

If the harassment from creditors continues, you may need to seek the legal help of an experienced attorney who knows the bankruptcy laws. This attorney can contact these offending creditors and put a stop to the threatening calls and mail. Although hiring an attorney may cost you some cash, it will provide you with some much-needed relief from creditors.

Once you have an attorney on your side they not only can put an end to harassment from creditors but they can also help walk you through the tangled web of the bankruptcy process. Although filing bankruptcy may not have been a personal goal of yours, in a tight situation it can provide you with some relief and having an experienced attorney can help ease you through the process. Hopefully in the end, you will be happy to answer the phone again.

If you're stressed out at the end of every month, wondering how you can make all your

credit card payments, you should consider debt consolidation as a potential solutions. It's not for everyone, but if your situation is right for it you could stop the stress and start living a normal life again. Visit http://www.insidedebtconsolidation.com for more helpful information.

What Amounts to Harassment?

Under the law, threatening violence, using obscene language and calling persistently with the intent to irritate/annoy amounts to harassment. Also, calling home at odd hours or at work place if there has been a notification to not do so or even calling up relatives or friends without your permission can all amount to harassment.

How Can I Avoid or Bring An End to This Harassment?

It would not be a bad idea to try and start a dialogue with the creditor before anything else, unless you have a strong sense that the person may not be affable. Explain why you are in default, and try to reason with them and ask for payment extensions or alternative arrangements if they can suggest anything, or put forth any ideas you may have.

As much as one would hope reason and logic can win the battle, the fact is that more often that not, it will not work this way. Debt collectors will probably live up to the stereotype of being unreasonable (sometimes even unfair and harsh) people. The next option you, as a debtor, have is to file for bankruptcy. Here is an option that will ensure that all debt collection activities (including phone calls), ethical or otherwise, come to an immediate end. As soon as you file for bankruptcy all creditors and bill creditors must immediately stop their collection efforts. Once you’ve filed for bankruptcy, both the Bankruptcy Court and the attorney will notify all creditors of your bankruptcy through the mail. In the meanwhile, since this could take a week or so to reach them, you can also notify them in case you get a call, or a creditor comes ringing your doorbell.

What if Nothing Works?

First and foremost, there is no question of nothing working out. You must be aware a law called the Fair Debt Collection Practices Act has been put in place to keep a check on issues related to harassment by creditors. Also, in case creditors continue to contact you after you have filed for bankruptcy and informed them of the same, there are penalties and fines in place for them. In fact, once notified that you are represented by an attorney all calls must be directed through the attorney.

Remember, that the creditor may be unreasonable, but the law is not and our attorneys will provide you with able guidance to tackle such issues. Disclose any such instances that you may have experienced, and let the attorney deal with it through the appropriate legal methods.

The first step is to try to address the issue before it becomes a problem. While paying the bill is the ideal, we know it is not always possible. It is important, though, that you don't ignore the issue and hope it goes away - it won't. In order to avoid having the debt turned over to a collection agency, you should call your creditor and explain that you are unable to pay the bill (and hiring a collection agency won't help you pay sooner) and tell them when you expect to be able to pay. Hopefully, you will be able to come to a compromise or produce a repayment plan.

If you are unable to work a deal with your creditor, and the debt ends up with a harassing collection agency, write a letter requesting that the collector stop contacting you. Under the Fair Debt Collection Practices Act (FDCPA), debt collection agencies and attorneys must stop contacting you after receiving a letter requesting that they quit. You should also indicate any illegal actions committed by the collector in this letter. Keep a copy of the letter for your records and also send a copy of the letter to the following address

Federal Trade Commission6th & Pennsylvania Ave.,NW, Washington, DC 20850

After you send this letter, collectors may only contact you to acknowledge receipt of the request, to tell you their efforts have ended or to tell you that they are suing you. However, you should note that the FDCPA only applies to collection agencies and attorneys - it does not apply to in-house collection departments. Having said that, though, many creditors will honor the request.

If your letter fails to end the harassment, a letter from a lawyer usually will. Additionally, once you have hired a lawyer, the collection agency or creditor's attorney must only communicate to you through your lawyer. The other benefit of retaining an attorney is that they can help you raise legal claims under the FDCPA. The downside to hiring a lawyer is that it can be expensive and a lot of times you really only need to send a letter requesting that they stop contacting you.

The final solution is to file for bankruptcy. Once you file the initial papers for bankruptcy, you are automatically protected from collection activity. The collector must first obtain permission from the bankruptcy court before it can continue its collection efforts; and the court will not grant permission to those seeking to collect unsecured debts (such as credit card debt). Filing for bankruptcy is a very effective way to stop creditor's from harassing you.

However, bankruptcy should not be entered into lightly and should not be used when your only concern is simply debt harassment. Bankruptcy filings will stay on your credit report for 7 to 9 years. It should only be used when you have grave financial problems.

Simple debt harassment can usually be stopped with less drastic measures than bankruptcy.

Under the Fair Debt Collections Practices Act, it is illegal for debt collectors to do the following:

Contact your employer or neighbors about your debt (they may only contact them to locate you, but may not mention the debt)

Call you late at night or at unreasonable hours Call you at work Call you repeatedly Engage in deceptive conduct Calling you without disclosing the collector's identity Use obscene, derogatory, or insulting remarks Threaten arrest or loss of child custody or welfare benefits Publish your name Use any communication, language or symbols on envelopes or postcards that

indicate that the sender is in the debt collection business Threaten self-help repossession without legal right or present intent to do so If the collection agency is violating any of these laws, you may be able to sue

them for damages, your attorney fees, plus an additional $1,000.00. Head off harassment before it starts. When financial setbacks prevent you from

paying all of your bills, call a Debt Settlement Company for help. If they cannot help, contact the creditor and explain your situation. For example, say that you have to pay the landlord and utilities first, and that you will pay your other bills when you can. Don't over promise: it's better to be realistic about your prospects for paying. By contacting the creditor first, you may avoid having the debt turned over to a collection agency, which will usually be less flexible than the creditor in working out a payment plan. If you decide to work out a payment plan, you should only agree to a realistic plan, preferably one that significantly reduces the debt--otherwise your payments may not even cover monthly interest charges and will never pay down the principal. Also, don't promise payments that would prevent you from paying critical expenses such as your rent or food.

Write a cease & desist letter. If explaining the situation doesn't stop collection efforts, the simplest way to stop contacts is to write the collector a cease & desist letter. Federal Law requires collection agencies to stop contacts with you after they receive a written request to stop. It's a good idea to include in the letter why you can't pay right now and what your expectations are for the future, though this is not necessary. You should also note in the letter any billing errors and/or abusive tactics debt collectors have used in their contacts with you. Be sure to keep a copy of the letter for your records.

Complain about billing errors. Collection letters are sometimes wrong. If a letter contains a mistake, you should write and request a correction (and keep a copy of your request). If you dispute the debt in writing within 30 days of your receiving notice of the right to dispute, the collection agency must stop collection efforts while it investigates. If the account is an open end account, like a credit card, you can dispute a charge within 60 days of receiving the bill.

Complain to a government agency. For creditor harassment, or if a debt collector keeps harassing you, or calls third parties after you send a cease letter, file a complaint you have about a collector's conduct to the Federal Trade Commission, Bureau of Consumer Protection, Division of Credit Practices, Washington, D.C. 20580. You may also call the FTC at 1-877-382-4357 or get a complaint form from their website: www.ftc.gov. Here is an example of a complaint letter