Dealing with unpaid debt can be stressful, and repeated or aggressive collection efforts can make the situation even more difficult. Consumers have protections under federal and state laws that regulate how certain debt collectors may communicate and attempt to collect debts.
Bankruptcy Lawyers Vegas provides general information about debt collection practices, consumer protections, and how bankruptcy may affect certain collection activities.
What Is Debt Collection Harassment?
Debt collectors may contact consumers about legitimate unpaid debts, but certain collection practices may violate applicable law. Depending on the circumstances, potentially improper conduct may include:
- Repeated calls intended to annoy, abuse, or harass
- Threats of violence or other unlawful actions
- Obscene, abusive, or intimidating language
- Misrepresenting the amount or legal status of a debt
- Falsely claiming to be an attorney or government representative
- Threatening actions that cannot legally be taken or are not intended
- Improperly communicating with certain third parties about a debt
The rules that apply can depend on who is collecting the debt and the circumstances involved.
Consumer Protections From Debt Collectors
The Fair Debt Collection Practices Act (FDCPA) is a federal law that regulates certain third-party debt collectors and establishes protections for consumers. Nevada law may provide additional protections in some situations.
Consumers may also have rights to request information about a debt or dispute certain debts, subject to applicable requirements and deadlines.
Can Bankruptcy Stop Collection Calls?
Filing a bankruptcy petition generally creates an automatic stay. The stay temporarily prohibits many creditors and debt collectors from continuing certain collection activities against the person who filed.
Depending on the circumstances, this may stop or affect:
- Collection calls and letters
- Certain lawsuits
- Some wage garnishments
- Certain repossession efforts
- Some foreclosure-related actions
Exceptions apply, and the automatic stay does not prevent every type of collection activity.
Debt Collection After a Bankruptcy Discharge
When an eligible debt is discharged through bankruptcy, creditors generally cannot continue attempting to collect that debt as a personal obligation. A discharge injunction generally prohibits collection efforts involving discharged debts.
Some debts are not dischargeable, and secured creditors may retain certain rights involving collateral.
Keep Records of Collection Activity
If you believe a collector is using improper practices, keeping accurate records can be helpful. Consider retaining collection letters, account statements, emails, voicemails, and notes showing when communications occurred and what was discussed.
Understanding Your Options
Debt collection problems can involve both consumer-protection and bankruptcy laws. If collection activity has become difficult to manage, understanding the debt involved, your rights, and the potential effect of bankruptcy can help you evaluate the options that may be available.
