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May 2022

What is Debt Collection Harassment?

By Bankruptcy Law No Comments

Whether it’s considered “good debt” or “bad debt,” the truth is that any type of debt can cause many emotional and physical effects to an Auburn or Opelika resident.

Studies show what many of us already know: debt is about much more than money. While the stress of debt can be immense on its own, creditors have the potential to bring even more stress when they resort to unethical tactics to try and force you to make payments. 

While creditors do possess a right to their collections activity, they are bound by the Fair Debt Collection Practices Act with how they may collect it. Unfortunately, this doesn’t always stop creditors, as debt collection harassment can even continue after you’ve filed for bankruptcy. 

Here’s what you need to know about debt collection harassment and how to fight it with the help of David S. Clark, an experienced Auburn and Opelika bankruptcy attorney.

DISCLAIMER: The following blog post is just advice, and you will be better served to call David S. Clark with your bankruptcy questions. This blog contains helpful tips and advice, but is not professional legal advice, and shouldn’t treated as such.

Need Bankruptcy Help? Call David S. Clark

What is Debt Collection Harassment?

Debt collection harassment, or creditor abuse, occurs when a collection agency that is owed money uses abusive collection practices to intimidate or force debtors to make a payment. Even without the money to pay off debt, a collection agency may act deceitfully in an attempt to collect anyway. 

Ultimately, debt collection harassment can come from any kind of debt including (but not limited to): student loans, credit card payments, mortgages, and auto loans; but with over 140 billion in unpaid medical bills across the United States, collection agencies are most often chasing payments related to medical bills. 

This is especially true in Lee County as the mean medical debt per person is at an incredibly high concentration between $994 and $3661.

Examples of Debt Collection Harassment

Despite what type of debt you may have, it is essential to know the signs of debt collection harassment and your rights as an Auburn or Opelika resident. Under the Fair Debt Collection Practices Act debt collectors may not: 

  • Use or threaten the use of violence to harm you, your reputation, or your property
  • Lie about who they are, the debt you owe, or what will happen if you fail to pay it
  • Call you repeatedly with the intent to annoy, abuse, or harass you
  • Use obscene or profane language with the intent to intimidate or scare you
  • Publish a list of consumers who allegedly refuse to pay debts (except to a consumer reporting agency) 

What if a Creditor Contacts Me During Bankruptcy?

According to Section 524 of the U.S. Bankruptcy Code, no one can take action against you if your debt has been discharged through bankruptcy. Known as the “automatic stay”, this action is immediately ordered and enforced by the bankruptcy court. 

Ultimately, the automatic stay makes it illegal for creditors to contact you about any discharged debt once you file for bankruptcy. This means creditors can’t call, email, visit, or do anything that attempts to collect debt from you. 

It is important to note that although creditors can no longer contact you regarding discharged debts, not all debts are discharged through bankruptcy.

Unfortunately, there are times when creditors still contact you, which violates the protections of the automatic stay. If a creditor willfully violates the automatic stay with an intent to collect, the court can sanction the creditor with the help of your bankruptcy attorney. 

How to fight Debt Collection Harassment 

If you are being harassed by unethical debt collection tactics, it is important to seek the help of a trusted Auburn and Opelika bankruptcy attorney to fight on your behalf. David S. Clark has years of experience and understands how overwhelming debt, bankruptcy, and creditors can be. 

If you are an Auburn or Opelika resident facing debt collection harassment, contact David S. Clark as soon as possible to discuss your situation in complete confidentiality. 

DISCLAIMER: The above blog post is just advice, and you will be better served to call David S. Clark with your bankruptcy questions. This blog contains helpful tips and advice, but is not professional legal advice, and shouldn’t treated as such.

Dischargeable vs. Nondischargeable Debt

By Understanding Bankruptcy No Comments

There are many types of debts that bankruptcy can discharge, but not all debts are created equal. 

Most Auburn and Opelika residents seek bankruptcy to wipe out their debts and get a fresh start. While bankruptcy allows for a large elimination of debt, certain obligations (called nondischargeable debts) will survive your bankruptcy discharge. When it comes time for you to file bankruptcy, it is important to know the difference between dischargeable and nondischargeable debts. 

If you have found yourself in difficult financial times, then hiring a qualified Auburn bankruptcy attorney like David S. Clark to guide you through a financial crisis may be exactly the help you need.

DISCLAIMER: The following blog post is just advice, and you will be better served to call David S. Clark with your bankruptcy questions. This blog contains helpful tips and advice, but is not professional legal advice, and shouldn’t treated as such.

Need Bankruptcy Help? Call David S. Clark

What are Dischargeable Debts?

Dischargeable debts are obligations that can be wiped out by your bankruptcy discharge. When you receive your discharge at the end of your case, you are no longer legally required to pay any of these debts and creditors cannot come after you to collect them. 

Examples of Dischargeable Debts Include: 

  • Credit Card Debt
  • Medical Bills
  • Payments on Motor Vehicles
  • House Payments
  • Debts Related to Your Business
  • Personal Loans

Timing Matters For Dischargeable Debt

Depending on what type of bankruptcy you’re filing, there might be changes in your dischargeable debt. For example, slightly more debts are available to discharge in a chapter 13 case than in a chapter 7 case

The timing of your bankruptcy can also affect which debts are discharged, and which ones are not. 

Pre-Filing Debt

Pre-petition debt is any debt incurred before the day that you file for bankruptcy. At the end of your case, the bankruptcy court will discharge all qualifying pre-petition debt. 

Post-Filing Debt 

In contrast, any debt that builds up after you submit your bankruptcy paperwork is known as post-petition debt. The court will not discharge this debt, and you remain responsible for paying any balances that you incur after the initial bankruptcy filing date. 

What are Nondischargeable Debts?

Nondischargeable debts exist because Congress decided, because of public policy reasons, that allowing debtors to eliminate their responsibility for certain debts would not be beneficial to society. Ultimately, the benefit to a creditor and society as a whole outweighs the benefit that the debtor would gain if their debts were completely discharged. 

Examples of Nondischargeable Debts Include:

  • Student Loans
  • Child Support
  • Personal Injury
  • Taxes
  • Fines

There are other debts that cannot be dischargeable, but only if someone files a lawsuit against you and the bankruptcy court decides that the debts must be nondischargeable. This includes debts incurred by a divorce, fraud, embezzlement, or by a malicious/willful injury. 

However, if you file a case and the creditor of these debts never files a lawsuit, these will automatically be discharged by a bankruptcy court. 

This is not true for the previous list of nondischargeable debts, which will automatically be nondischargeable. 

If you are an Alabama resident looking for an Auburn bankruptcy attorney that can help you work through a variety of financial options to help you overcome your debt crisis, contact David S. Clark.

DISCLAIMER: The above blog post is just advice, and you will be better served to call David S. Clark with your bankruptcy questions. This blog contains helpful tips and advice, but is not professional legal advice, and shouldn’t treated as such.