There comes a point when a person faces a level of creditor harassment that’s so intense, along with an accumulation of debt that they’ll likely never be able to crawl their way out of, that they must consider filing bankruptcy. When this happens, it’s imperative for an individual to start looking into Roseville bankruptcy attorneys who can help them with their claim. With one of these legal professionals at a person’s side, they’ll have various defenses against harassing phone calls and letters from creditors.
Bankruptcy Automatic Stay
When a person’s attorney finishes filing bankruptcy papers for their client, an automatic stay goes into effect that legally prevents creditors from engaging in any further collection activities. This means that, regardless of how much a person owes a certain creditor, collection activities must immediately cease.
So even if a creditor has threatened auto repossession, foreclosure, or other negative penalties, they’ll have to wait until the conclusion of the bankruptcy case to continue. In some instances, though, a creditor could successfully appeal the stay and continue their activities. Fortunately, this becomes more difficult for them when an individual is represented by a Roseville bankruptcy attorney.
If Harassment Continues
Creditors cannot stand it when they’re restricted from engaging in their typical collection activities, and in some cases, they’ll choose to ignore the automatic stay and continue trying to collect. In other situations, a creditor may simply not have proper procedures in place to prevent the mistake of continued collection activities during an automatic stay. Either way, this may work out for the person filing bankruptcy.
Continuing to try to collect on a debt during an automatic stay is a violation of the Fair Debt Collection Practices Act (FDCPA), and under civil law, a person’s bankruptcy attorney in Roseville can file a lawsuit against a creditor for this. Fortunately, actual damages do not need to be proven in these situations since it’s a “strict liability” law.
In the end, this lawsuit can result in a judgment of $1,000 for the debtor against their creditor. This is quite ironic considering the fact that the creditor was trying to collect a debt when they broke the law. In addition, the creditor may also be liable for the debtor’s attorney fees.
Speak with a bankruptcy attorney today and find out how getting a fresh start is as easy as pressing the restart button! Call now 916-446-1791