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Monday, November 10th, 2008

by Theodore Sliwinski, Esq.

Bankruptcy Stops Collection Calls!

If you owe money on your credit cards in New Jersey it is not a crime. However, the debt collectors treat you like it is. When bill collectors call you every hour of the day, at dinner time, or even at work,  then it can be very upsetting and stressful. Bill collectors will relentlessly haunt you to get you to pay. As a New Jersey bankruptcy lawyer, I have helped thousands of New Jersey-ites wipe out millions of dollars in credit card debt. I have heard every type of collection call that there is. Sometimes the debt collectors try to become your friend and talk you into paying your debt. If this does not work, then their most popular tactic is to harass you until you pay your debt. The debt collectors have recorded messages and they literally will call you 10 times a day. If you have several creditors then you could receive 10 to 30 collection calls a day. These calls can literally ruin your life. Life already in New Jersey is stressful enough. The traffic is the pits. New Jersey leads the nation in having the highest property taxes. Moreover, the price to see a stupid movie is now $10. Life is not that great in New Jersey. If you receive endless collection calls it just makes the doldrums of living in New Jersey even worse!

However, there is some great news for New Jersey debtors; bankruptcy stops debt collectors and all of their collection calls. Some bill collectors will try anything to get you to pay their bill. Some debt collectors will even try to call your neighbor and then pretend to be a sick family friend. Many debt collectors will try to scare you and threaten to file criminal charges if you don’t pay. Many creditors try to convince terrified debtors to pay by a “check by phone.” The debt collector will try to convince the debtor to give them your bank account number so as to effectuate the “check by phone.” Debt collectors will do or say anything to squeeze the money out of you, even when they know you don’t have it. Although not all bill collectors resort to lying and trickery, it does happen more often than you would imagine.

If you have past due bills or if have fallen on hard times, then you should look at your debt relief options. Bankruptcy, debt negotiation, debt settlement, and sometimes the filing of a lawsuit against a creditor who violates the law can stop collectors. If you contact the New Jersey Bankruptcy Center we can help you to determine whether bankruptcy is right for you.

Filing for bankruptcy will immediately stop any debt collectors from harassing you anymore. Even if you plan to file for bankruptcy in the near future, once you retain our office, you can then refer all of your collection calls to my firm. The debt collectors must stop contacting you directly so you won’t be a victim of their scare tactics. If you have ever been the victim of rude harassing phone calls from a debt collector, then you know that their calls can be disturbing, intimidating, and can instill the fear of god into you. Collection calls make you afraid to answer your phone. Moreover, collection calls are often made to your place of employment. Many debtors have legitimate fears that they could lose their job because they receive these collection calls at work.

If you file for bankruptcy, then once you file the debt collectors must immediately stop any and all communications with you. If you file for either a chapter 7 or 13 then the debt collectors have to contact my firm. The debt collectors are not legally permitted to contact you anymore once you have filed for bankruptcy. This is arguably the most valuable benefit of filing for bankruptcy – peace of mind. In fact, after you file for bankruptcy, it is illegal for a debt collector to continue any collection efforts whatsoever. If they do contact you and try to collect after your case has been filed, then it can be a violation of the automatic stay which may have both civil and criminal penalties. The automatic stay is a federal law under 11 U.S.C. 362 that prohibits all collection activities of creditors and stops most all legal actions against you.

Stopping bill collectors, stopping collection calls, stopping creditor harassment, and starting to get back in control of your life and finances are the major benefits of bankruptcy. After you file your bankruptcy case, then you can just refer all of your collection calls to the New Jersey Bankruptcy Center. Therefore, when a creditor calls you tell them you have filed for bankruptcy, give them our number, and then hang up on them. Debt collectors get quite upset when you file for bankruptcy because it forces them to deal with the New Jersey Bankruptcy Center. Once you file for bankruptcy, bill collectors, credit card companies, or anyone else you may owe money to can’t push you around anymore.