Unfortunately, most creditors are not above using collection efforts to harass consumers into paying their debts. Typically, a creditor’s primary means of harassing consumers is the telephone. Some creditors will even resort to calling a consumer’s workplace to collect a debt. Harassment by debt collectors is one of the main reasons that debtors choose to file bankruptcy. Filing bankruptcy will help anyone tired of around-the-clock phone calls to stop them once and for all.
Bankruptcy uses the automatic stay to stop harassing creditor phone calls. The automatic stay is a mechanism created by federal law to stop the collection efforts of creditors during a bankruptcy case. Any creditor but violates the automatic stay may be subject to severe sanctions imposed by federal law.
Some creditors may choose to call a consumer at work or even serve an employer with a wage garnishment order. Few, if any, employers wish to deal with a worker’s financial problems. Anyone whose financial situation has deteriorated to the extent that they are having wages garnished or are receiving endless phone calls both at home and work should consider filing a bankruptcy case.
It is possible that a bankruptcy debtor may still receive harassing phone calls after filing bankruptcy. If a debtor has recently filed a case, it is possible that the creditor who is the source of the harassing phone calls has not yet received notice of the bankruptcy case. In this situation, do not ignore the call but answer I and inform the caller of the bankruptcy filing. Provide the case number, the date the case was filed, the chapter, and the bankruptcy court where the case was filed.
It may be a good idea to keep this information written down near the if and when an uninformed creditor calls again in the future. Also, if a creditor does call, ask for the name of the caller and note the date and time they called.
Theron Morrison and the Morrison Law Group may help any Utah resident better understand their bankruptcy options as the Morrison Law Group offers free consultations. Call 801.456.9933 today to schedule a FREE consultation. We have locations in Ogden, Logan, Sandy, Orem, and St. George to serve the residents of the counties of Weber, Cache, Salt Lake, Utah, Morgan, Davis, Washington, and surrounding areas.