Understanding the Rights & Limitations of Creditors
Nov. 22, 2022
Even the most responsible people can encounter financial difficulty at some point in their lives. This is never anything to be ashamed of, and there are several steps you can take to start working towards a brighter financial future.
If you’re having money troubles, you may be concerned about how you’ll keep up with your debt obligations. Many individuals reach out to bankruptcy attorneys wanting to know, “How do I stop creditor harassment?” Even if you’re unable to make good on all your financial obligations, you still retain many rights that can protect you from creditor harassment and creditor calls.
For more information on this, reach out to the Law Office of Scott N. Tisevich. With offices in Reno, Nevada, Scott N. Tisevich is able to serve clients in Churchill County, Lyon County, Carson City, Story County, Douglas County, and Las Vegas.
Consumer Rights Laws
There are a number of consumer rights laws that you should be aware of any time you’re deciding whether or not to file for bankruptcy. The Fair Debt Collection Practices Act (FDCPA) protects consumers by prohibiting the use of abusive language or deceptive practices by debt collectors. The FDCPA applies to all kinds of debt including auto loans, consumer debt, mortgages, and medical debt.
The Fair Credit Reporting Act (FCRA) is another federal law intended to help consumers by ensuring your privacy and imposing strict requirements for credit reporting agencies on how they access, record, and share your information.
Lastly, there are state laws that also offer protection. These laws require creditors to purge their records regularly so that any civil or criminal judgments connected to credit information that’s seven or more years old cannot be disclosed. State law also has requirements on how creditors must notify consumers when they’re taking adverse action against them.
It’s important to understand the restrictions on bill collector calls so you can protect your rights and seek redress if they’re violated. Debt collectors are prohibited from calling you before 8:00 a.m. and after 9:00 p.m. unless you’ve already given consent to be called outside this window. You also have the right to tell them not to call you at work and they must respect this.
It is, however, very important that you don’t simply ignore these calls and that you take steps to address the problem, whether you legitimately owe the money or there’s been a mistake. A creditor has the right to take actions against you, such as putting a lien on your property, which can be very damaging.
There are some creditor rights, such as being able to contact you via phone, mail, or email. They also have to give you certain information, such as the amount of debt owed, the name of your creditor, and what steps you should take if you claim the debt isn’t yours. If you feel a debt collector has broken the law, you can file a lawsuit against them, but this must be done within one year of the incident.
Bankruptcy Effects on Creditor’s Rights
If you do decide to file for bankruptcy, you’ll get some instant relief from your creditors, and this is known as an automatic stay. Once your bankruptcy petition has officially been filed, creditors are prohibited from contacting you to begin or continue collection efforts. After your bankruptcy is complete, all eligible debts will be discharged. If, for any reason, you’re still being contacted by creditors after this time, you should contact a bankruptcy attorney immediately. At this point, they are breaking the law, and you can take legal action against them.
Legal Advocacy When You Need It Most
If you’re in the Reno, Nevada, area and would like to know more about your options for filing for bankruptcy or what creditors can and can’t do during this time, contact the Law Office of Scott N. Tisevich.