At the law firm of Hickson Law, PC, our attorney has been helping people in Austin and throughout Texas overcome debt for decades. When she first started doing this type of work, the things that she would see creditors do in order to collect were appalling. They would show up at a person's door, barge into the house and make all sorts of threats.
Over the years, the Fair Debt Collection Practices Act (FDCPA) of 1978 has slowly reduced the severity of creditor harassment. Unfortunately, there are many creditors who still go too far in their attempts to collect. They call again and again, still making threats that create undue stress for the debtor. Much of this harassment violates the FDCPA and creditors know it.
has the teeth to stop creditor harassment
. It has the strength to put an end to threats of foreclosure
, repossession and garnishment
. It can give you the peace of mind that the Fair Debt Collection Practices Act cannot.
The automatic stay that applies once a debtor files for bankruptcy is a powerful tool that creditors respect. It is an injunction that bars a creditor from starting or continuing any action to collect the debt.
There was a time when creditors tested the law and the patience of the bankruptcy judges. They quickly discovered that the courts took violations of the automatic stay seriously. Most creditors will immediately cease any collection efforts once they are told of our involvement as attorney on the case and an ensuing bankruptcy filing. They are aware that a violation will expose them to sanctions by the bankruptcy court.
What happens if creditors continue to harass you after filing bankruptcy? There's no lawsuit necessary, as there is under the FDCPA. Judges are able to sanction creditors who persist in their collection attempts after being put on notice in bankruptcy. They will pay if they attempt to violate the automatic stay that requires them to stop all collection actions.