Fighting Back Against Abusive Debt Collectors Through Bankruptcy

 Posted on November 28, 2023 in Bankruptcy

Struggling with growing debt obligations while enduring threatening collection calls and letters can make daily life feel unbearable. Professional debt collectors are required to follow fair practices per the federal Fair Debt Collection Practices Act and the Texas Debt Collection Act. However, many continuously disregard the law and start harassing communications that violate borrowers’ rights. When you feel bombarded, mistreated, and unable to keep up with payments plus interest, leveraging bankruptcy may offer critical protection. A lawyer in Texas can help you determine the next step for your specific situation and what to do about this.

Illegal and Unethical Collection Tactics

While collectors cannot legally deceive, misrepresent facts, or deploy harassment techniques, far too many break the rules, including through:

• Baseless threats about arrest or criminal charges for unpaid debt
• Furnishing knowingly inaccurate credit information to sabotage borrowing capacity deliberately
• Disclosing account delinquencies or balances to employers without consent
• Countless phone calls without honoring written requests to cease communications
• Verbal hostility, insults, intimidation methods, and manipulation
• Contacting and pressuring relatives, friends, or coworkers about accounts

Misrepresenting legal authority to seize assets like homes forcibly

These practices both constitute illegal abuse and inflict immense mental, emotional, and financial injury on vulnerable borrowers. However, options exist to halt collection activities and legally discharge debts through the courts.

Seeking Shelter Through Bankruptcy Filings

For Texas residents feeling overwhelmed by debt and relentless abusive collection communications, declaring bankruptcy can forcibly stop calls, letters, threats, and harassment. Formally filing for Chapter 7 bankruptcy liquidation or Chapter 13 bankruptcy debt restructuring and repayment plan triggers an automatic stay. This court-ordered injunction legally requires all collectors to immediately cease contact or risk being held in contempt for violating the stay.

Beyond stopping abuse, successfully filing bankruptcy also leads to eliminating or repaying debts in a more manageable way under court direction. The specific debt types and amounts capable of being discharged depend on personal financial details. Meeting with a lawyer allows for analyzing if bankruptcy makes sense and delivers the greatest protections based on your unique situation.

Contact a Dallas, TX Bankruptcy Lawyer

Borrowers maintain rights and protect you against collector mistreatment under federal and Texas laws. If you feel stressed by illegal threats, lies, disclosure of information, or intimidation tactics, a Wise County, TX bankruptcy attorney can help. You do not deserve to endure abusive treatment simply for falling behind on commitments against your control. Call Acker Warren P.C. at 817-752-9033 for a free consultation.