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Bankruptcy can halt collection by debt collectors

Debt collectors and bankruptcy often go hand-in-hand. Likely, if a Florida resident is considering a bankruptcy filing, that person has reached the point where he or she has missed payments on particular assets and is receiving calls from debt collectors. These calls may serve as one motivating factor to decide to proceed with a bankruptcy filing.

Fortunately, bankruptcy can offer a respite from what are often unwanted calls from debt collectors. When a person has filed for bankruptcy, certain debts will be included in the bankruptcy filing. A debt collector cannot try to collect on those debts. Additionally, while a bankruptcy case is ongoing, debt collectors cannot continue collection activities.

It is imperative that if a debt collector calls a person with a threat of repossession that the debtor notify his or her attorney of such a call, as well as notify the debt collector that the debtor is represented by an attorney. The debt collector is required to contact the attorney with any further communications.

In some situations, a lender may have the right of repossession despite a bankruptcy filing. For example, a lender who loaned a debtor money for an automobile may have the right to repossess a person's car even after bankruptcy, if the debt remains unpaid. However, this does not mean a person should simply hand over the keys to a debt collector. Legal advice from a Florida bankruptcy attorney may be able to guide a person who is dealing with telephone calls from debt collectors on how best to proceed.

Bankruptcy can offer a solution to a person's financial challenges and create a positive change in a person's life. Eliminating calls from debt collectors may be one of these positive changes.

Source: Consumer Financial Protetion Bureau, "Can a debt collector try to collect on a debt that was discharged in bankruptcy?", accessed July 11, 2015

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