As a bankruptcy attorney in Asheville NC, I frequently meet with potential clients who are worried about collection companies calling their family members and employers in an attempt to collect an old debt. Its difficult, stressful and annoying. Since the collection companies are paid on commission, their strategy is frequently to intimidate you into writing them a check for any amount.
Fortunately, there is help through our bankruptcy laws. Upon filing a bankruptcy case, the Court automatically orders a “stay” against all collection attempts by your creditors. This means they cannot call, write, or try to collect in any other way (lawsuits are halted, foreclosures put on hold). If they do violate our bankruptcy court’s automatic stay, they can be fined by our Courts as illustrated here: Bank of America Contacts Client After Bankruptcy Filed. In that case, Bank of America ended up paying $12,500 as a fine for contacting a client repeatedly after a bankruptcy case had been filed.
Most cases do not go that far. We can stop many of your creditors from contacting you while we are preparing your bankruptcy case. After you have hired me to help, I ask that you tell any creditor who writes or calls that you have retained me to help with your financial situation, and to only contact me going forward. This generally stops 90 percent of the calls.
When we file your case, all contact should stop immediately.
If you have any questions or concerns, I would be pleased to speak with you during a free, no-obligation initial consultation.
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