The Fair Debt Collection Practices Act governs third-party debt collectors and debt buyers. They cannot call before 8 a.m. or after 9 p.m. They cannot call you at work once you tell them your employer does not allow it. They cannot discuss your debt with your family, neighbors, or co-workers. They cannot threaten arrest, threaten a lawsuit they do not intend to file, or misrepresent the amount you owe. They must identify themselves as debt collectors, and if you send a written request to stop contacting you, they must stop, except to tell you they are taking a specific action. A collector who breaks these rules owes you statutory damages and your attorney fees.
The moment a bankruptcy petition is filed, every creditor is barred by federal law from any act to collect: no calls, no letters, no lawsuits, no garnishments, no repossessions, no foreclosure sales. We notify the creditors who are calling, and the calls stop within days. A creditor who continues after notice is violating a federal court order and can be made to pay damages, which we pursue.
A creditor that sues and wins a judgment in Indiana can garnish wages, freeze a bank account, and place a lien on real estate. Many collection suits are filed by debt buyers who cannot prove they own the account or that the amount is right, and those suits can be defended. If a judgment already exists, bankruptcy discharges it and stops the garnishment, and in some cases money garnished shortly before filing can be recovered.
Write down the date, time, number, and what was said on every call. Save the voicemails and the letters. If the collector broke the law, that record is the evidence, and a violation claim can sometimes pay for the bankruptcy itself.
Stopping the calls is the first step. The reason the calls started is the real problem, and that is what the consultation is for. We look at the whole picture, including whether you need to file at all, and we tell you what we would do if it were our family.
The first meeting is free, in person at either office or by phone or video. Bring whatever you have: bills, collection letters, pay stubs, a tax return if it is handy. We go through the whole picture, tell you whether bankruptcy is the right tool and which chapter, and quote a flat fee with a payment plan. Nothing is filed until you are comfortable with the plan. More about how we handle bankruptcy cases.
Admitted to the Indiana bar at 24, the youngest licensed attorney in the state at the time, Miguel pairs that early start with more than fifteen years helping Northwest Indiana families through injury claims and bankruptcy.
A collector may contact others only to find your address or phone number and may not discuss the debt with them. Calls to your workplace must stop once you say your employer does not permit them.
No. There is no debtor’s prison in the United States. A collector who threatens arrest is violating federal law, and that threat is evidence in a claim against them.
The stay is effective the moment the case is filed. We send notice to the creditors immediately, and the calls generally stop within a few days.
Call either office or send a message. We will tell you plainly whether bankruptcy is the right tool, and which one.