Debt Collectors Who Keep Calling and Trying to Collect After Bankruptcy

Once you file for bankruptcy protection, creditors cannot take any action against you to collect the debts you owe them. They also cannot take any action against you after your bankruptcy if you receive a bankruptcy discharge.

The “Automatic Stay” In Bankruptcy

The automatic stay is a form of injunction that prohibits creditors from taking or continuing any action against you from the time you file for bankruptcy and continuing until you receive a bankruptcy discharge (or your bankruptcy is dismissed). The automatic stay prevents creditors from starting or continuing any action against you, including:

-Lawsuits;

-Foreclosure actions;

-Garnishment actions;

-Lien levies; and

-Repossessions.

Collection Calls After Bankruptcy

One of the most annoying and frustrating things that occasionally happens after a person files for bankruptcy is that a creditor still try to make collection calls. These calls are absolutely forbidden under the bankruptcy laws.

If you are receiving collection calls and you are currently in bankruptcy or have received a bankruptcy discharge, the first thing you need to do is contact your attorney. If you are not represented by an attorney, you should consider contacting an experienced Florida bankruptcy attorney who can help figure out why you are receiving these calls and determine the fastest way to get them stopped.

Typically, the process for stopping the calls involves:

-Reviewing the bankruptcy court filings and making sure that the creditor who is calling was listed on your bankruptcy schedules (your list of creditors);

-Verifying that the bankruptcy court entered a Discharge Order and officially discharged the debts being claimed by the creditor. (Some debts are not discharged in bankruptcy, so it is important to make sure that the specific debt was discharged.); and

-Forwarding a copy of the Notice of Bankruptcy or Discharge Order to the creditor, if the creditor claims notice was not received, along with a letter warning the creditor that any further collection efforts will be reported.

Seeking Monetary Sanctions Against a Creditor Who Continues To Call

A single collection call from a creditor may be due to the creditor’s negligence or data entry error. However, repeated calls are obvious signs that an aggressive creditor is trying to collect on the bankruptcy debt.

If a creditor does not stop its attempts to collect on its debt after being notified of your bankruptcy, an action can be started in the bankruptcy court to obtain sanctions against the creditor. Sanctions against the creditor could include payment of your attorney fees related to getting the calls stopped, as well as an order for actual damages. If the bankruptcy court finds that the violations were willful, it also may issue an order for punitive damages.

If you filed for bankruptcy and are still being harassed by creditors, contact your bankruptcy attorney. If you are not represented by an attorney and you are in the West Palm Beach area, call the attorneys at the Law Office Of Kelley & Fulton, P.L. at (561) 204-8357. We can help.