Does Filing for Bankruptcy Protection Stop Debt Collectors?

Are you getting seemingly non-stop phone calls from debt collectors? You are probably feeling stressed out, annoyed, overwhelmed, and ready for it to stop. Bankruptcy might be the right option. When you file for personal bankruptcy, most debt collector activity must immediately stop. You are protected by the automatic stay. Here, our San Francisco bankruptcy attorney provides a comprehensive guide to the key things to know about your rights regarding debt collectors after filing for bankruptcy protection in California. 

Background: Debt Collectors Must Avoid Harassment

As a background, it is important to emphasize that you are protected from harassment by debt collectors. A federal law known as the Fair Debt Collection Practices Act (FDCPA) strictly prohibits debt collectors from harassing debtors. Here are four key things to know about your protections as a consumer under the FDCPA: 

• No Use Harassment or Abuse: Under the FDCPA, debt collectors are prohibited from harassing or abusing you. Along with other things, the law bars using threats of violence, obscene language, or repeatedly calling you with the intent to annoy, abuse, or harass.

• No Use of False or Misleading Statements: Further, debt collectorscannot use deceptive practices to collect a debt. They cannot misrepresent the amount you owe, falsely claim to be attorneys or government representatives, or make empty threats of legal action. 

• Time Restrictions on Call: Debt collectors must avoid contacting you at unusual times or places. The law defines unusual times as before 8 a.m. or after 9 p.m.—unless you have explicitly agreed otherwise. 

• No Disclosure of Your Debt to a Third Party: A debt collector cannot discuss your debt with anyone other than you, your spouse, or your attorney. They are not permitted to inform your family, friends, or employer about your debt. They can only contact third parties to seek information regarding how to contact you—such as your current phone number. 

What happens if a debt collector has already violated your rights under the FDCPA? You may potentially have a claim for financial compensation. To the best of your ability, document that violation. You should share that information with your San Francisco bankruptcy lawyer. 

Understanding the Automatic Stay (Bankruptcy Filing) 

To answer the original question directly: Yes, filing for bankruptcy protection can stop debt collectors from contacting you. The reason is that you are protected by a legal provision known as the automatic stay from the very moment that you submit a valid bankruptcy petition. The automatic stay applies to both Chapter 7 bankruptcy filings and Chapter 13 bankruptcy filings. 

To emphasize: When you file for bankruptcy, the automatic stay immediately goes into effect. It automatically halts most collection activities by creditors and debt collectors. The automatic stay provides temporary relief and allows you to address your financial situation without the pressure of ongoing collection actions. However, there are some limited exceptions that may apply. 

An Overview of Debt Collector Actions that Must Stop

What exactly does the automatic stay protect you against when you file for bankruptcy in California? All of the following debt collector actions must stop until the bankruptcy process has been resolved: 

• Phone Calls: Once you file for bankruptcy, debt collectors are generally required to stop all phone calls to you. The automatic stay provision prohibits creditors from contacting you to collect debts, providing immediate relief from harassing communications. If collectors continue to call, they are likely violating the law. 

• Emails/Text Messages: Debt collectors must also cease sending emails and text messages after you file for bankruptcy. The automatic stay extends to all forms of communication aimed at collecting a debt. Any continued electronic messages from collectors can be considered a violation.

• Letters: Collection letters should stop arriving in your mailbox once bankruptcy proceedings begin. The automatic stay prohibits creditors from mailing notices, demands for payment, or any other correspondence related to debt collection. If you receive a collection letter after filing for bankruptcy protection, be sure to save it. 

• Lawsuits: If a debt collector has initiated a lawsuit against you, filing for bankruptcy typically halts these legal actions. The automatic stay stops ongoing lawsuits and prevents new ones from being filed to collect on debts included in the bankruptcy. 

• Wage Garnishment: Bankruptcy filing usually stops wage garnishments that are in place to collect debts. The automatic stay requires creditors to cease garnishing your wages immediately. Garnishment may or may not restart after the bankruptcy process. 

Know the Exceptions: Automatic Stay

It is important to clarify that there are some exceptions to the automatic stay in California. The following types of collection-related efforts may continue after the filing of a bankruptcy petition: 

• Child Support Cases: Child support is not covered by bankruptcy. Any child support collection efforts—including wage garnishment—may continue. 

• Tax Collection: Tax collection is not directly stopped by bankruptcy. Though, both the IRS and the California Franchise Tax Board typically provide debt relief options for people who are actively petitioning for bankruptcy. 

• Debts Incurred Post-Bankruptcy Filing: While not especially common, if you do incur a post-bankruptcy filing debt, that financial obligation is also not covered by the automatic stay. 

Why Trust the San Francisco Bankruptcy Lawyer at Resolve Law Firm

Are you receiving those non-stop phone calls from debt collectors? It may be the right time to consider filing for personal bankruptcy protection. At Resolve Law Firm, APC, we have the professional expertise that you can trust. Our founder, Le’Roy Roberson, is a San Francisco personal bankruptcy lawyer who puts the rights and interests of clients first. With experience handling both Chapter 7 bankruptcy cases and Chapter 13 bankruptcy cases, Attorney Roberson is prepared to review your case, explain your options, and help you determine what comes next. 

Contact Our San Francisco Bankruptcy Lawyer for Immediate Help

At Resolve Law Firm, APC, our San Francisco personal bankruptcy attorney is committed to helping clients solve problems. When debts start piling up, it can be crushing. You need a top-tier advocate on your side. Call us now or contact us online for a confidential case consultation. Our firm provides bankruptcy representation in San Francisco and throughout the surrounding region in the Bay Area.