Automatic stay may stop creditor harassment
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Automatic stay may stop creditor harassment

| Nov 4, 2020 | Bankruptcy

Those who struggle with debt know first hand the burden of dealing with creditor harassment in Nevada and throughout the nation. Not only is it difficult to deal with unpaid debt and keeping up with minimum payments, but having creditors call incessantly makes a hard situation even worse. 

According to the Fair Debt Collection Practices Act, consumers have rights when it comes to avoiding creditor harassment over unpaid debts and loans. It is critical that consumers know their rights in order to avoid unnecessary harassment. 

What is creditor harassment?

It is illegal for creditors to use certain tactics when attempting to collect a debt. These include the following: 

  • Calling incessantly during all hours of the day and night 
  • Garnishing wages under certain circumstances 
  • Threatening to confiscate property without intent of actually doing so  
  • Inflating a debt with additional fees 
  • Pretending to be attorneys 
  • Threatening violence, using profane language or involving scare tactics 

In some cases, consumers have filed lawsuits against companies who have threatened to take their children or pets if they do not respond. 

What is an automatic stay?

Once a consumer files bankruptcy paperwork with the U.S. Courts, an automatic stay goes into place. Under the stay, creditors are prohibited from contacting you regarding an unpaid debt. They are also restricted from continuing to pursue lawsuits, making phone calls, contacting consumers by mail and garnishing wages. Depending on the situation, the automatic stay may be temporary. However, it is critical that consumers list all creditors on their bankruptcy paperwork, as these are the entities that are given a no contact order.