How to Stop Creditors Calling Before Bankruptcy

If you are contemplating filing for bankruptcy, or are about to file, the constant letters and phone calls from creditors and debt collection agencies can be maddening. Once you actually file the petition for bankruptcy, all of your creditors are required by law to stop calling you. However, before filing, there are a few things that you can do to stop the madness.

Instructions

Difficulty: Moderate

1. Educate yourself on your rights and the laws that protect you from unfair collection procedures. Visit consumer advocacy and bankruptcy law websites for more information on your rights and the laws that limit creditors and collection agencies from harassing you. If you know what they can and cannot do, it's much easier to protect yourself and fight back if they've crossed the line.
2. Determine if the debt collector has broken the law. Family, personal and household like medical, auto, and charge account debts are all covered under The Fair Debt Collection Act. It is illegal to harass you by using obscene language, threaten to have you arrested, make false representation or misrepresentation about the amount of your debt, legal action being taken, or their identity.
3. Sue them for breaking any laws under The Fair Debt Collection Act in a state or federal court, report them to the Federal Trade Commission (FTC), or contact your State Attorney General's office to file a complaint if the creditor or collection company has crossed the line, which, unfortunately, they often do.
4. Use the power of the pen. Write a letter to each debt collection agency or creditor demanding that they stop trying to contact you. Under the Fair Debt Collection Act, once the creditor receives this letter they are required by Federal law to stop contacting you except to notify you that are stopping communication and to notify you of any specific action on their part.
5. Try to settle the debt. Unfortunately, the sharks may continue to circle and there are a number of loopholes that allow debt collectors and creditors to come after you again so long as you owe them money. For example, a creditor or collection agency can just sell your "bad debt" to another collection company and the process will start all over again. They can also use the courts to sue for payment. If you can negotiate a settlement for a part of the debt, or pay part of the debt and agree to a repayment plan, they won't call anymore.
6. Consolidate your debts if you can to stop collection calls and get a more affordable monthly payment plan, use a credit counseling agency to help you negotiate with your creditors, or take the plunge and file for chapter 13 or chapter 7 bankruptcy if nothing else works. If they fail to stop harassing you, hire a lawyer and fight back.