If you are behind on your bills, creditors or collection agencies may be contacting you regularly. Collection efforts are supposed to cease when you file for bankruptcy, but sometimes creditors disregard the law.
Stopping creditor harassment during bankruptcy in Fort Worth may require help from an experienced bankruptcy attorney. Reed Allmand at Allmand Law Firm could help you put an end to the constant phone calls, threatening letters, and other forms of creditor harassment.
Bankruptcy Should Stop Harassment
When you experience financial pressure, creditors compete to get whatever money you have to put toward your debt. Harassing phone calls and harshly worded letters are meant to intimidate you into paying their debt first. Filing a bankruptcy petition should put an immediate stop to this behavior, as well as terminate any efforts to foreclose or repossess property or garnish your wages.
When you file a bankruptcy petition, 11 United States Code § 362 calls for the bankruptcy judge overseeing the matter to issue an automatic stay. This court order bans creditors from contacting you or engaging in collection efforts outside of the bankruptcy proceedings.
To stop creditors from harassing you, an attorney may notify them that you have filed for bankruptcy in Fort Worth. If you are not working with an attorney or want to be sure your creditors are notified, send a copy of the notice to each creditor yourself and document when and where you mailed it.
What if Creditors Violate the Automatic Stay?
Sometimes, a creditor may continue to contact you after you have made your bankruptcy filing. If there has been adequate time for it to receive notice of your bankruptcy, check whether you included that creditor in your filing. If not, you will need to amend the list of creditors and notify the creditor you overlooked.
If the creditor was included in your filing, the contact may violate the automatic stay of collection activity. Thoroughly document the outreach, including the date, time, and method of contact, and the name of the creditor representative who initiated the contact. Share this information with your attorney.
These issues can often be resolved with a phone call from your legal representative and a follow-up letter. If the creditor does not stop harassing you for payment, your Fort Worth attorney may ask the bankruptcy court to intervene.
Continued Harassment Has Consequences
If a creditor that was properly included in your bankruptcy petition continues to pursue collection efforts after the automatic stay is issued, you have legal remedies. You can ask the bankruptcy court to sanction the creditor and even request punitive damages in some cases.
The creditor’s violation of the automatic stay must be willful. That means merely that the creditor knew of your bankruptcy and contacted you anyway. You do not need to prove any intent to harass or violate the order. The court can award you the costs you incurred in dealing with the illegal contact, such as court costs, attorney’s fees, and compensation for your emotional distress.
When the creditor’s conduct was egregious, the court may award you punitive damages. These function as a fine to punish the creditor for violating the automatic stay. An experienced attorney could advise you whether seeking punitive damages is merited if a creditor did not stop harassing you after you filed in Fort Worth.
Work With a Bankruptcy Attorney To Stop Creditor Harassment in Fort Worth
One of the benefits of bankruptcy is the opportunity to resolve your financial problems in peace. Do not let a creditor take that benefit from you. If you have declared bankruptcy but are still being contacted by creditors, contact an attorney at Allmand Law Firm. We are ready to assist you in stopping creditor harassment during bankruptcy in Fort Worth, allowing you the respite you deserve.
