Chapter 7 Bankruptcy Help: What to Do When a Creditor Won't Stop Contacting You
When it comes to filing for a Chapter 7 bankruptcy, you can expect that your unsecured debts will be discharged after your non-exempt possessions are sold to pay off your creditors (not to worry; your house won't be part of the distribution money). Once the debts are discharged, it's illegal for your creditors to attempt to contact you and collect on any old debts.
However, that doesn't mean that they'll listen: a minority of creditors might continue to collect on payments owed, despite the fact that the bankruptcy courts discharged the debts. If you're being harassed by a persistent creditor, there are multiple steps you can take to protect yourself and your finances.
How To File Chapter 7 Bankruptcy
Contact the Bankruptcy Court
If an old creditor won't leave you alone even after your debts have been discharged, you can file a petition with your local bankruptcy court. Once the court receives your petition, your bankruptcy case will be opened again so that the courts can assess the debts that were discharged. Not to worry: this is just a formal procedure, as any and all debts that have been discharged are to remain permanently discharged. Once your bankruptcy case has been opened, the bankruptcy courts can order your creditors to stop contacting you. It's a good idea to get a great bankruptcy attorney by your side throughout this whole process to ensure that you successfully petition the bankruptcy courts for legal relief.
If your creditor is still harassing you even after the bankruptcy courts have intervened, you can move onto the next step.
File a Civil Suit
If the creditor violates your bankruptcy ruling, you can file a civil lawsuit. The punishment will involve a fine, which will be paid directly to you. Again, if you have to bring a lawsuit against your creditor, it's recommended that you contact your bankruptcy attorney, as the process can be long, difficult and riddled with obstacles.
If you'd like to warn others about your creditor's behavior, you can take this next step for relief.
Report the Creditor to the Federal Trade Commission (FTC)
To properly report your creditor and strengthen your lawsuit against them, it's recommended that you file a case with the FTC or your attorney general. This means that the government can open up an investigation into the consumer practices of your creditor - if any illegal practices are discovered (and if your creditor is ignoring the law, then you can bet they'll discover more than a few), the creditor will be fined. You'll also be entitled to monetary compensation for your distress.
If a creditor won't stop harassing you despite having the debt discharged by bankruptcy courts, it's a good idea to contact a bankruptcy attorney for assistance. Make sure that your bankruptcy lawyer has a great deal of experience in this arena, as dealing with persistent creditors requires the expertise of a highly seasoned professional.
Chapter 7 Bankruptcy Help: What to Do When a Creditor Won't Stop Contacting You