Will Chapter 7 Bankruptcy Stop Creditor Harassment and Collections in Florida?

You are behind on bills. You are trying to make payments, but your paycheck is never enough. You’re struggling financially, going deeper and deeper into debt by the day.

But that is not all. Creditors are hounding you day and night. You get phone calls constantly. Late notices are arriving in your mailbox almost daily. You are tired of being harassed, but what can you do?

You can file for Chapter 7 bankruptcy. When you file for bankruptcy, an automatic stay goes into effect. An automatic stay is a legal order that immediately stops most creditors from taking further collection actions against you. It also stops harassment against the debtor. This includes the following:

• Phone calls and letters. Creditors must stop contacting you to collect debts.
• Lawsuits. Any pending lawsuits or legal actions related to debt collection are typically halted.
• Wage garnishments. Creditors can no longer garnish your wages.
• Foreclosures and repossessions. These actions are also generally paused during the bankruptcy process.

Types of Harassment

Once you file for bankruptcy, a debt collector cannot engage in any of the following forms of harassment:

• You have told a debt collector not to call your cell phone or workplace, and they do anyway.
• You have been harassed by a collector (for example, bad language or yelling) for not paying a bill.
• A collection agency has called your family, friends, or employer.
• You have received voice messages from debt collectors.
• A debt collector has told a relative or co-worker that you owe a debt.
• You are constantly receiving calls from an auto dialer.

If you have been a victim of any of the above, you have the right to sue a debt collector within two years under Florida law from the date the law was violated. You are entitled to receive $1,000 in damages under the Florida Consumer Collection Practices Act.

How Long Does an Automatic Stay Last?

The automatic stay is temporary. How long it lasts depends on the specifics of your case and the type of debt involved. Once the bankruptcy process is complete and your eligible debts are discharged, creditors can no longer attempt to collect those discharged debts. However, if the debt is not discharged, creditors may resume collection efforts once the bankruptcy case is closed.

Are There Any Exceptions?

There are some exceptions. The automatic stay does not apply to certain debts, such as child support, alimony, some tax debts, and some student loans. Additionally, if you have filed for bankruptcy multiple times in a short period, the automatic stay might be limited or not apply at all.

Contact Our West Palm Beach Bankruptcy Lawyer Today

We need money to survive, and not having it can be frustrating. You may not be thrilled about filing for bankruptcy, but it can stop creditor harassment and give you a fresh start.

Bankruptcy should not be taken lightly, though. West Palm Beach bankruptcy attorney Brian K. McMahon, P.A. can make the bankruptcy filing process easy to understand and as stress-free as possible. Call (561) 658-1789 or fill out the online form to schedule a consultation. We serve the West Palm Beach, Boca Raton, Port St. Lucie, and South Florida areas.