Creditor Harassment And Resources

Creditor harassment or collection activities are governed by the Fair Debt Collections and Practices Act better known as the FDCPA. The Fair Debt Collections and Practices Act dictates what times of day and what places creditors are allowed to call debtors in attempts to collect on debt. It further dictates that after request for ceasing such communications are received that creditors no longer contact the debtors in the manner that is prescribed.

Federal law currently provides fines and penalties for creditors who violate this act. That being said, many creditors continue to walk over this particular federal law. Few seem to recognize its validity. While debtors always have the option of suing under this law and collecting the fines and penalties themselves, it should be noted that the fees and penalties collected from the creditors violating this act would still be retained property of the bankruptcy estate.

Many lawyers encourage clients to sue based on the FDCPA for very selfish reasons. Debtors going through the time and trouble to collect the evidence for a FDCPA suit, often find themselves never receiving any money. Money retained from violation of the FDCPA is frequently paid to the attorney who takes their cut only to have the monies turned over to the Bankruptcy Court at the time of filing. I encourage clients rather than to waste time filing claims under the FDCPA to simply focus their energies and efforts toward filing their bankruptcy.

Automatic Stay Order

Once your bankruptcy is filed, you will be under the “automatic stay” order protection ceasing all collection activities. Collection activities can also be ceased by the “automatic stay” order. When a bankruptcy case is commenced, an order is issued in every case called the “automatic stay” order. The “automatic stay” order is an order through your federal court ceasing any and all collection activities against you. Collection activities run the gambit from phone calls to civil suits to foreclosures to repossessions. All contact on the behalf of creditors towards debtors in attempts to collect debts must be ceased. In most if not all instances the protections afforded by the “automatic stay” order are vastly superior to those, in practice, provided by the FDCPA.

Stay orders can also accomplish activities that can not be addressed under the Fair Debt Collections and Practices Act. For example if a client needs to stop a foreclosure of their home, if only to buy 60 more days in that home, or if a debtor is under the threat of impending garnishment the FDCPA will provide little to no protections from either of these clients. “Automatic stay” order will cease both foreclosure and garnishment the moment it is issued – the moment that their bankruptcy is filed.

If you find yourself in a situation where you feel you are at risk of foreclosure, repossession, garnishment or other aggressive collection activities, I encourage you to call Morse Law at (303) 300-6684 and set up a free initial consultation with one of our attorneys as soon as you are able.

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Contact Information

Denver Office:
Morse Law, LLC

  • 910 16th Street Mall Ste 1100
    Denver, CO 80202
  • 303-300-6684
  • 720-941-2755

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Morse Law, LLC

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    Colorado Springs, CO 80903
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Morse Law, LLC

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