Hiring a bankruptcy attorney can shield you from debt collector harassment
Every year it seems certain types of litigation stand out in the public eye. In 2014, debt collector lawsuits seem to be taking center stage. While debt collector harassment is hardly new, it seems that now more individuals are taking the step of fighting back against unethical debt collectors by taking them to court. Lawsuits have been filed against banks, credit card companies, and other lenders, as well as against third-party debt collection agencies. Some of the most shocking ethical breaches described by the debt collector lawsuits include companies charging illegal interest rates of up to 21.75 percent and attempting to collect debts which had already been paid. While attempting to collect on these unethical debts, many debt collectors allegedly also used unethical tactics such as making harassing phone calls at all hours of the night and notifying friends, family, and employers of the debts.
Another Way to End Legal and Illegal Debt Collection Activities
While initiating a debt collector lawsuit is one way to put an end to harassment, it is by no means the only way or even necessarily the best way. Hiring a bankruptcy attorney can provide immediate relief from all debt collection activities, because as soon as debt collectors are informed that you have retained counsel, they must stop contacting you and instead contact your attorney. This is required by law under the Fair Debt Collection Practices Act.
Your Bankruptcy Options
Of course, hiring a bankruptcy attorney to handle all interactions with your debt collectors has the additional benefit of enabling you to explore options for debt relief. Depending on the types of debt you have, your income and assets, and your long-term goals, you may wish to choose either Chapter 7 or Chapter 13 bankruptcy.
Chapter 7 bankruptcy provides the opportunity to eliminate all unsecured debts, such as credit card debts, medical bills, and personal loans. This type of bankruptcy is ideal for individuals who know they will never be able to get out from underneath their debts without help. Certain non-exempt assets may need to be sacrificed, but the end result will be a fresh start.
Chapter 13 bankruptcy allows individuals to restructure their debt and get extra time to catch up on their payments. This type of bankruptcy is designed for individuals with steady incomes who are suffering due to mounting interest on their debts. Once Chapter 13 is initiated, interest, late fees, and penalties will be suspended for the duration of the 3- to 5-year repayment period. Individuals who file for Chapter 13 can keep all of their property and even discharge a significant portion of their unsecured debts at the end of the repayment period.
Contact a Bankruptcy Attorney Today
In order to find out more about how hiring an attorney can put an end to debt collector harassment, and also learn which type of bankruptcy is right for you, contact California Bankruptcy Relief today.
