As if the debt itself was not stressful enough, people who owe money are often plagued by creditors who will not stop calling and threatening. While creditors have certain rights, many of the steps they take to collect what they are owed fall outside of what is allowed by the Fair Debt Collection Practices Act. For example, creditors cannot use obscene language, threaten to hurt you or put you behind bars, or make disturbing calls to your workplace. The problem with the FDCPA is that it requires legal action to enforce it and it will not stop legal collection efforts such as lawsuits and judgment liens.
There is one certain way to stop creditor harassment and collections: bankruptcy. At the Hedtke Law Firm put an end to the phone calls and threats with the help of Chapter 7 bankruptcy and Chapter 13 bankruptcy.
As soon as bankruptcy is filed, an automatic stay takes effect. The automatic stay requires that creditors must stop all collection actions against you. That includes the harassing phone calls and threats of foreclosure, repossession and garnishment.
Creditors receive a systematic notice of the automatic stay within a week of a bankruptcy filing. Any collection actions that continue after the automatic stay takes effect are sanctionable under the bankruptcy law.