Can I stop my creditors from calling me if I go bankrupt?
Many of the client who seek our consultation regarding bankruptcy say that one of the most stressful things they go through is the numerous harassing calls that they receive from collection agencies. Even upon telling them to stop calling, these collection agencies continue to call day and night. Most of all, the clients express the fact that it becomes especially unbearable when their family members start to receive these calls as well demanding them to make payments. It is because of this kind of painful situation that led many of these clients to consider filing bankruptcy.
It seems like the statistics related to these collection agencies calls defy common sense. More than 40% of the people receiving collection agency calls received calls more than 4 times a week, and 18% received calls more than 8 times a week, which means that the calls were received daily. More than 30% say they received the calls before 8:00 A.M. or after 9:00 A.M. Those who have not experienced these kinds of calls will not know the pain these people have to endure.
Such clients come to us and request us to file bankruptcy for them, as they heard that if you file bankruptcy, you will stop receiving these harassing calls and also not have to pay the debts that they owe. Indeed this is true to an extent, but metaphorically speaking, it almost seems like treating the leg by simply cutting the leg off, rather than treating it with a cast.
Bankruptcy allows you to receive a discharge from the debts that you owe and gives you a fresh start. However, it also may negatively affect your credit score for up to 10 years. There is also the possibility of a trustee or creditor bringing a lawsuit to deny your bankruptcy discharge which would result in unexpected attorney fees. In the case that you do business, you may find it difficult to start a new business. Therefore, attorneys who have the proper knowledge and experience practicing bankruptcy law do not blindly recommend bankruptcy as an immediate solution to every situation.
Upon assessing a client’s particular circumstances, a capable bankruptcy attorney can determine whether it would be more favorable than not to file bankruptcy, and if not, can go further on to determine what other legal measures can be taken to protect the client. One such measure is called a Cease and Desist letter. This measure is not limited to the context of bankruptcy, but also can be used in the context of stopping someone from making defamatory remarks or if you think that someone is infringing a trademark that you own.
If a collection agency constantly call you and this becomes intolerable, the debtor, with the help of an attorney, can send a Cease and Desist letter, asking the collection agency to stop calling the debtor. Upon receiving such a letter, the collection agency is only able to make one more final call to inform the debtor that no further calls will be made. Beyond that, the collection agency cannot contact the debtor anymore.
Of course, a Cease and Desist letter cannot be used in every single situation. Collection agencies are, by law, bound to follow a Cease and Desist letter request, but creditors such as banks are not bound by law and cannot be forced to stop making such calls. Although not bound by law, many banks receive these letters and their internal policies generally guide the banks to somewhat reduce their aggressive attempts in trying to follow up on unpaid loans and debts. Accordingly, you should seek the consultation of an attorney to learn more about what kinds of appropriate legal measures can be taken.
If you simply chop off your leg when it is broken rather than putting a cast over it, you will obviously go through unnecessary torment and inconvenience. Similarly, if you are going through harassing calls and find it unbearable, you should seek the expertise of an experienced bankruptcy attorney and consider all your options rather than immediately heading towards filing bankruptcy.
If you have any questions relating to bankruptcy, please email us at mail@songlawfirm.com