How can I stop the daily threats from creditors?

[anonymous]

Whant can i do to stop the daily threats and harrasements from creditors.

[Bankruptcy Helper]

Creditors can contact you through the mail or by telephone. If they do not get satisfaction, bill collectors are notorious harassing debtors until they get what they want. So, when do you get relief from creditor harassment?

To understand the answer to this question, you need to understand the process of most creditors. If you are behind on secured debt, the creditor will most likely start repossession or foreclosure proceedings against you, after they have first notified you in the mail.

For unsecured debt, the process is different. The creditor who has the original loan will try to collect the debt first, and if they are not successful, they will write- off the debt and sell it to a third party specializing in that type of debt collection.

The third party, called junk debt buyers, are very aggressive debt collectors.
Eventually, many of the junk debt collectors will file law suits to obtain judgments against you. They do this so they can make attachments to your various assets, place liens on the assets, and garnish your wages (in certain states).

If the debt collectors get a judgment against you they can also seek damages in court which might include interest, fees, and penalties. If successful, these judgments can be devastating to a bankrupt debtor.

There are basically two ways you can get relief from creditor harassment. The first way is to insist the debt collectors abide by the Fair Debt Collections Practices Act of 1978 (FDCPA). The FDCPA was created to eliminate abusive practices in the collection of consumer debts, to promote fair debt collection, and to provide consumers with an avenue for disputing and obtaining validation of debt information in order to ensure the information's accuracy.

According to the FDCPA, you can challenge debt collections by sending a cease and desist letter and ask them to stop contacting you. They are then required by law to stop contacting you.

If they continue to harass you after receiving the letter, you can file a lawsuit against them, forcing them to pay penalties.

Generally, the cease and desist letter stops any harassment made over the telephone and through the mail, but it will not stop the company from filing a lawsuit to obtain a judgment.

The only other thing you can do to stop debt collection harassment or the filing of a lawsuit by a creditor is to file for bankruptcy protection. The automatic stay normally stops bill collections efforts immediately.