This might be the number one thing that drives people to bankruptcy. As an attorney who has been practicing bankruptcy in New York and New Jersey for many years, I can say that without a doubt the first big relief clients have when they hire me is the end of the calls.
How stupid are credit card companies?
Most people who come into my office don’t want bankruptcy. Even when it is really their only option, they don’t see it until the calls ruin their life. Most of my clients want to keep paying creditors, even if it is a small amount, they prefer to keep paying. But that is not good enough for predatory creditors. The Creditors and collection agents are totally out of control. Creditor calls at work, creditors calling peoples homes at night, creditors making threats and saying cruel things. You know what I write about. It is shameful. A recent client who came to my New Jersey bankruptcy office told me that a creditor called her neighbor. It is just outrageous.
One thing most people don’t know (because it is not a service offered by every bankruptcy attorney) is that you can stop the calls BEFORE filing bankruptcy. I always stop the calls for my clients that need time to pay bankruptcy fees on a payment plan or do some bankruptcy planning.
The reason bankruptcy stops all collection action is because of a thing called the ‘automatic stay‘. The automatic stay is a law that says all collection activities must stop the second a bankruptcy is filed. That includes stopping foreclosure, stopping repossessions, stopping garnishments, unfreezing bank accounts and more.
There is another law that protects us from creditors. It is called the Fair Debt Collections Practices Act. (abbreviated FDCPA). This law usually applies to secondary creditors (collection agents and the like). It states that once given notice that you have an bankruptcy attorney/bankruptcy lawyer, they can ONLY contact you through that lawyer. If they keep harassing you, you can sue them for violation of the FDCPA. You can collect damages AND attorneys fees.
At my firm we take great pride in offering excellent protection to our clients the minute they hire us, even if they cant file bankruptcy right away.