What Qualifies as Debt Collection Attempt?

: Reese Baker & Associates

  Filed under: Debt

When an individual files bankruptcy in Texas, they are awarded a temporary automatic stay which prevents any creditor from making attempts to collect a debt. Sometimes, however, a debt collection attempt is made in violation of the automatic stay. Because of the ramifications, creditors typically do everything they can to avoid violating the automatic stay, but here is what you can do if it does happen and how debt collection attempts are qualified.

Violations of Automatic Stay

Creditors who violate the automatic stay can face liabilities in the form of monetary compensation for the debtor who is currently protected under the automatic stay. Any attempt to collect debts such as phone calls or letters pose a violation of the automatic stay. If you receive a collection attempt it’s most likely that the creditor didn’t receive proper notice that you filed bankruptcy or you mistakenly left them off of your bankruptcy petition. Your Hidalgo bankruptcy attorney will need to be made aware of any creditors that were accidentally left off of your bankruptcy petition. If the creditor didn’t receive proper notice, you can do so by providing them with your bankruptcy case number, the debt you filed for bankruptcy, and the US Bankruptcy Court district in which you filed.

What is a Debt Collection Attempt?

The US Supreme has recently had to decide on what actually qualifies as a debt collection attempt. It was previously understood that a “debt collection attempt” was any type of communication demanding that a debtor pay money, however in a recent bankruptcy case, a party was contacted with foreclosure alternatives from its mortgage provider. The communication wasn’t an attempt to collect a debt, however, the question was brought to the court system on whether or not any call or letter, even if not demanding money, could be deemed a violation of the automatic stay.

Hidalgo County Bankruptcy Attorney

Part of filing for a Texas bankruptcy and successfully discharging debt boils down to good record keeping. Always ensure that all your creditors are listed on your bankruptcy petition and that you keep track of any communication from a creditor while your bankruptcy case is processing. If at some point you realize that there has been a mistake or a creditor knowingly violates the bankruptcy automatic stay, contact your Hidalgo County Bankruptcy Attorney for guidance on how to proceed.