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THE
NEW AND IMPROVED
UTAH BANKRUPTCY LAW HANDBOOK
CREDITOR HARASSMENT -
HOW TO
ELIMINATE CREDITORS FROM CALLING YOU AND HARASSING YOU BY FILING A
CHAPTER 13 OR CHAPTER 7 BANKRUPTCY
The Fair Debt Collection Practices Act provides consumers with affirmative
claims against debt collectors who harass them by calling too often, contacting
consumers directly once they've hired an attorney, or threatening to file a
lawsuit after the statute of limitations - You may be entitled to up to
$2,000 in statutory damages.
If
creditors are harassing you or even attempting to collect on debts
in legal (but still stress-inducing) ways, consider communicating
with your creditors directly to address the problem. Explain your
situation. Tell them why you haven't paid your bills and try
to negotiate for a longer payment period, lower payments or a
reduction in total amount owed.
I have a
friend who used to work for a credit card company in the default
section who said that the company's policy was to lower interest
rates and lower payments, but ONLY if the debtor requested it.
The company representatives were forbidden from offering it - but,
if it was requested, they would do it. So, in your
communications with your creditors - always ask for a reduction in
interest rate and a lower payment!
If your creditors are unwilling to compromise, consider filing
bankruptcy. When you file bankruptcy, an automatic stay goes into
effect and prevents creditors from taking any kind of collection
action. Once you file your bankruptcy petition, creditors should
stop contacting you within 7-10 days. If they don't, the law is on
your side and you can let your bankruptcy lawyer handle it.
This means that you can even file a motion for sanctions with the
court to have them penalized if they continue to contact you after
your filing.
DISCLAIMER
NO INFORMATION OR MATERIALS CONTAINED HEREIN ARE INTENDED
TO CONSTITUTE LEGAL ADVICE, AND IS NOT APPLICABLE TO ANY SPECIFIC SET OF FACTS,
ESPECIALLY AS TO ANY INDIVIDUAL'S PERSONAL SITUATION. THE INFORMATION
CONTAINED HEREIN NOR THE PERUSAL OF IT DOES NOT
ESTABLISH NOR CONSTITUTE AN ATTORNEY-CLIENT RELATIONSHIP WITH EVELAND &
ASSOCIATES OR ANY OF ITS ATTORNEYS.
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