Charles J. Schneider, P.C.certified consumer bankruptcy specialist
forms for your office visit
call today 734-237-1523
Practice Areas Menu In This Section

Stopping creditor harassment with Chapter 13's automatic stay

Wayne County residents struggling with debt are probably all too familiar with debt collectors and the types of practices they use to try to collect. They may not, however, be familiar with the types of limits the law places on what collectors can and cannot do. And Wayne County residents have some legal options of their own that can protect them from debt collectors.

On the one hand, debt collectors do have the right to try contacting borrowers at home, between 8 a.m. and 9 p.m., whether by phone, fax, mail or an in-person visit. They can also contact borrowers' places of employment, but they cannot continue calling if the employer wants the calls to stop. And they can reach out to a borrower's friends and family members for help locating the borrower -- but, importantly, they cannot say they are trying to collect on a debt (or how much a borrower owes).

On the other hand, debt collectors are prohibited from using profanity or threats of violence against borrowers. They cannot present themselves as lawyers or government officials, and they cannot make up other reasons as to why they are calling. They are prohibited from telling anyone else about the debt and under no circumstances can they suggest that a borrower will be arrested for not cooperating with them.

Despite these restrictions, debt collectors do have a lot of leeway to try to come after borrowers. But Wayne County residents seeking to stop creditor harassment have an important legal option: filing for Chapter 13 bankruptcy. When they do, something called an "automatic stay" becomes active, and stops any collection actions from continuing.

Chapter 13 has the added benefit of allowing filers to keep assets like their home, car or business that may be liquidated under a Chapter 7 filing. Under Chapter 13, filers can make manageable payments for a number of years -- usually three to five years -- with any remaining debts generally getting discharged at the end of that period.

The automatic stay under Chapter 13 is a particularly powerful method for anyone looking to stop foreclosure actions, for example. A legal professional can help borrowers get debt collectors off their case and get the fresh financial start they need.

Source: WFMY News 2, "Dealing With Debt Collectors: What You Need To Know," June 25, 2014

No Comments

Leave a comment
Comment Information
  • rating

    Posted by MaryDecember 11, 2015

    "I am overwhelmed by your response to my call, even 10 years after my bankruptcy was discharged. You have more knowledge and expertise than I could have imagined. Because of you, my fears have been put to rest. For that, I'm so very grateful. Thank you many times over. "

  • rating

    Posted by ClientOctober 26, 2010

    "... I was extremely impressed with Charles' understanding of the bankruptcy laws to the extent that I felt certain that my best interests were always at the forefront. "

  • rating

    Posted by MarleneJanuary 8, 2014

    He helped me thru my 1st bankruptcy and now the second. I had no idea what to expect , but they kept me informed and answered all my questions. Mr. Schneider is the most experienced and knowledgeable lawyer I have ever met. If you have to file call this attorney first!

  • Avvo Rating 10.0 superb | Top Attorney Bankruptcy
  • Rated By Super Lawyers Charles J. Schneider | visit superlawyers.com | super lawyers 2011-2015
  • Avvo Ratting 10.0 superb Top attorney chapter 7
  • Avvo clients' choice 2014 | chapter 7
  • ICLE CONTRIBUTOR
  • American board of certification | certified consumer bankruptcy specialist
  • AV lexisNexis Martindale-Hubbell Peer Review Rated for ethical standards and legal ability
email us for a response

Let us evaluate your situation
and identify solutions

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy