Know Your Rights

Filing Bankruptcy and the FDCPA

Making the decision to file for bankruptcy can be a difficult choice for a consumer to make.  Eventually, after receiving numerous collection letters and calls and not being able to dig yourself out of debt, choosing bankruptcy is more than likely your best option.  The benefit of filing for bankruptcy is the "fresh start" you will receive after your debt has been discharged and can bring you a sense of calm when the calls and collection efforts come to an end. 

Filing for bankruptcy will allow you to eliminate your unsecured debt, such as credit card debt, medical bills and personal loans.    Filing for bankruptcy can give you the opportunity to begin again free of the debt you have amassed with out the stress of paying back the amounting interest rates and finance charges.  Once you file for bankruptcy, your creditors and debt collectors can no longer contact you and attempt to collect the debt.   After your bankruptcy filing has been discharged, your debt gets "wiped out".  

Despite filing for bankruptcy, often times your creditors and debt collection agencies ignore the letter of the law and still continue to contact you to demand payment.  One of the reasons the Fair Debt Collection Practices Act ("FDCPA") was enacted was to protect consumers in this situation.  Filing for bankruptcy is supposed to act as your safeguard from the harassment of creditors and collectors and provide you with a fresh start.

The FDCPA protects consumers who have obtained a bankruptcy discharge and are being contacted by collection agencies. The FDCPA will protect you from a collection agency who is calling or sending letters to collect on debts included in your bankruptcy filing.  Contacting you to collect a debt that is included in your bankruptcy is considered a misrepresentation of the status of the debt and a violation of the law.  Likewise, reporting the debt to the credit reporting agencies as past due with a balance is also a violation of the FDCPA and the Fair Credit Reporting Act.  While creditors and collection agencies are not required to delete accounts from your credit report, they must report the account information accurately and reflect that the account has been discharged in bankruptcy with a $0 balance. 

If you have filed for bankruptcy and received a discharge but still continue to be contacted by debt collectors and creditors, contact SmithMarco P.C. for a completely free case review.

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