Tag: creditor harassment

Filing Bankruptcy

Why Filing for Bankruptcy Shouldn’t be a DIY Project

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Filing for bankruptcy “pro se” means representing yourself without an attorney. The bankruptcy process involves complex rules, forms, laws, and court decisions, making self-representation risky. Some people choose this approach because they believe they cannot afford an attorney or their case is straightforward. Regardless of the reason, filing without legal guidance is not advisable.

Here are some of the most common problems with filing for bankruptcy pro se (without an attorney):

  • Filing the wrong type of bankruptcy – Each type of bankruptcy is designed to solve specific problems.  Property is treated very differently when it comes to Chapter 7 and Chapter 13.  If you file the wrong Chapter bankruptcy, you run the risk of losing valuable property or end up not being able to discharge certain debts.
  • Losing valuable property that could have been protected — Personal bankruptcy allows you to claim exemptions that can protect your home and even your business. In a Florida Chapter 7 case, state bankruptcy exemptions can help safeguard your property. Florida’s homestead exemption is among the most generous in the country. To use Florida’s exemptions, you must have lived in the state for at least 730 days before filing your bankruptcy petition. Learn more about common Florida bankruptcy exemptions.
  • Filling out the bankruptcy forms incorrectly — Your bankruptcy petition must be accompanied by documents listing all debts, creditors, and assets. Errors or omissions can cause delays, additional costs, or dismissal of your case.
  • Experiencing continued creditor harassment – When you hire an attorney to file your bankruptcy, creditors are required by law to only speak with your attorney and may no longer harass you about your debt.  If you choose to represent yourself in bankruptcy, the lender may try and lift the automatic stay, which is what protects you from continued creditor calls while your bankruptcy is ongoing.   A consumer has specific rights when a creditor violates the automatic stay.
  • Missing required education courses — Chapter 7 and Chapter 13 filers must complete approved credit counseling before filing and a financial management course before receiving a discharge. These requirements can confuse pro se filers. Failure to file the required certificate can result in dismissal of the case.

Understanding these issues is important if a creditor challenges whether a debt can be discharged, the trustee alleges fraud, or another legal dispute arises. An attorney’s guidance is essential to successfully responding to a complaint or motion.

If you have any questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.

Related Resources:

O’Niell, Cara. “Filing for Bankruptcy Without an Attorney.” NOLO, 27 August, 2026.  https://www.nolo.com/legal-encyclopedia/pitfalls-filing-chapter-7-bankruptcy-without-attorney.html

Bankruptcy Law, Debt Collection

Collection Laws & Bankruptcy: What are my Legal Rights?

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Any business that extends credit to a consumer must adhere to federal and state consumer laws and fair debt collection practices. When businesses extend credit to consumers, they run the risk of the consumer not being able to pay them back.

When a creditor attempts to collect a debt directly, state law governs the collection process. In many states, the creditor must contact the consumer by phone and provide written notice before starting formal collection proceedings. Most states prohibit repeated harassing phone calls, threats of legal action that cannot be taken, misrepresenting the creditor’s identity, sending mail that references debt collection on the outside, and attempting to collect more than the amount owed.

State and federal laws protect consumers from harassment by creditors and debt collection agencies.

Debt collection agencies must comply not only with state laws, but also with the federal Fair Debt Collection Practices Act (FDCPA). The FDCPA prohibits abusive and deceptive debt collection tactics, such as calling a consumer and failing to identify the reason for calling, calling at inappropriately early or late hours, contacting the consumer at work after being told the consumer cannot receive calls at work, revealing the consumer’s debt to third parties, or threatening violence.

Collections and Bankruptcy

Filing for Chapter 7 or Chapter 13 bankruptcy triggers an automatic stay. This is one of the best tools available to bankruptcy filers. When a person files for bankruptcy, the court will issue an order called an automatic stay. This puts an immediate stop to collection attempts, creditor harassment, along with any civil lawsuits filed against the person pursuing bankruptcy.

The automatic stay gives filers relief when they face multiple financial pressures and collection actions at the same time.

Automatic Stay Benefits

When someone is facing severe financial hardship, they may be at risk of losing the most basic of necessities. If they are behind on utility bills and face losing water, electricity, or gas service, the automatic stay can give them extra time to resolve the issue and avoid a shutoff.

The same protection applies to someone facing foreclosure. The automatic stay immediately pauses those proceedings. If the filer rents their home and is facing eviction, the stay may also provide temporary relief.

Click here to read more.

If you have questions about this topic or are facing financial hardship and considering bankruptcy, contact an experienced Miami bankruptcy attorney who can explain your options. As both an experienced CPA and a proven bankruptcy lawyer, Timothy Kingcade helps clients use bankruptcy laws to protect their assets and pursue successful outcomes. Since 1996, Kingcade Garcia McMaken has helped people from all walks of life build a stronger financial future. Our attorneys help thousands of people each year use bankruptcy protection to restart, rebuild, and recover. Once you hire our firm, we will contact your creditors to stop the harassment. You can also find helpful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.

Related Resource: Creditor Held in Contempt of Court for Violating Automatic Stay

Debt Collection, Debt Relief

CFPB Announces Two Final Debt Collection Rules to Go into Effect November 30

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The Consumer Financial Protection Bureau (CFPB) announced two final debt collection rules which are scheduled to take effect on November 30, 2021. These two rules clarify and add further detail to provisions of the Fair Debt Collection Practices Act (FDCPA), the law that offers protections to consumers from abusive or unfair collection practices from third-party debt collectors.

These rules were originally going to be made effective in the spring, but the CFPB delayed the effective date by 60 days to allow all affected parties time to comply due to the COVID-19 pandemic. However, after making the announcement regarding a 60-day delay, the CFPB determined that the extension was not needed and published the official notice in the Federal Register officially withdrawing the extension.

Debt Collection

How Federal Laws Protect You When Dealing with Debt Collectors

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Dealing with debt collectors can be stressful. Their job is to get the consumer to pay on a debt at any means necessary, which can often mean through coercion, harassment, and fear. Many debt collectors have been known to use aggressive or illegal tactics to collect on a debt, leaving many consumers to feel like they have no choice but to make payment to get them to go away. However, federal law offers certain protections when it comes to debt collectors. It is important that consumers understand what these protections are so that they are aware of what rights they do have when dealing with debt collectors.

According to the Consumer Financial Protection Bureau (CFPB), nearly one in every four people have a debt in collections. Illegal debt collection practice is a common complaint made to the CFPB.  

Debt Collection, Debt Relief

Predatory Debt Collectors Barred from PPP Loans Under New Bill

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New legislation introduced this week will effectively bar all predatory debt collectors from receiving money from funds received under the federal government’s Paycheck Protection Program (PPP).  

The measure has been introduced by Representatives Suzanne Bonamici (D-Ore.) and Marie Newman (D-Ill.). In announcing the proposed legislation, the lawmakers pointed to an analysis conducted by the Washington Post in January 2021. The Post reported several incidents where debt collection companies had harassed consumers for payment on debts after they had received their own financial assistance from federal PPP loans. It was their hope that this legislation will curb these practices and will effectively block predatory debt collection firms from receiving PPP money themselves.  

Debt Collection

Venmo’s Debt Collection Practices Under Investigation by the CFPB

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Popular digital money-transfer service, Venmo, is finding itself at the center of a Consumer Financial Protection Bureau (CFPB) investigation. The company that is owned and operated by PayPal Holdings, Inc. received a “Civil Investigative Demand” from CFPB with respect to Venmo’s debt collection processes and unauthorized fund transfers.  

Venmo has been the subject of a series of investigative articles by The Wall Street Journal in both 2019 and 2020 with respect to their aggressive debt-collection tactics. It reported that Venmo made threats to users who overdraw their accounts. These threats were also made to users who were the victims of scams. Even during the difficult financial times brought on by the COVID-19 pandemic, the company has reportedly continued its aggressive collection  practices.

Debt Collection

State and Federal Agencies Teaming Up to Combat Illegal Debt Collection

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Debt collection is a profitable business in the U.S., but not all debt collectors follow legitimate, legal collection practices. According to officials from the Federal Trade Commission (FTC), most consumer complaints made annually involve illegal debt collection practices, which is why they have made recent efforts to crack down on these types of tactics. 

In response, the FTC has launched a multi-agency campaign called “Operation Corrupt Collector.” This crackdown campaign focuses on educating consumers on how to identify illegal debt-collection practices, as well as enforcement against debt collectors who are found to be breaking the law.  

Coronavirus, COVID-19, Debt Relief

5 Ways to Protect Your Stimulus Check from Creditors

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As Americans begin receiving their stimulus checks from the $2.2 trillion CARES Act, many who are struggling with debt, worry this money will be intercepted by creditors seeking payment. More than 80 million stimulus checks have been processed thus far, which is a huge source of relief for the 20 million Americans out of work.

Many creditors view these stimulus payments as a chance to receive payment on outstanding debt, especially those that have already been reduced to court judgments. If a financial institution is given a garnishment order, it is possible they will immediately freeze that amount of money deposited into the account, only providing the consumer a limited amount of time before the funds are taken by the creditor.  However, certain measures can be taken to protect this stimulus money from creditors.

Bankruptcy Law, Credit Card Debt, Debt Relief

How to Stop Harassment for Debts You Do Not Owe

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Debt collectors will do just about anything to get a consumer to pay on a debt, their job depends on it.  This can even include the collection of old debts that are past the statute of limitations. According to recent figures from the Consumer Financial Protection Bureau (CFPB), in conjunction with a complaint database through consumer advocacy group, U.S. PIRG Education Fund, 44 percent of all complaints against debt collectors have to do with attempts to collect on a debt that is not even owed by the person receiving the call.

The problem is many consumers are not aware that they do not owe on the debt, and they are not fully aware of their legal rights when it comes to debt collections. Under the Fair Debt Collection Practices Act (FDCPA), third-party debt collectors are limited in how many times a day they can call consumers, as well as the type of communication and language they may use while collecting on the debt. If the communication constitutes harassment, the consumer has the right to ask the debt collector to stop contacting him or her, and file a lawsuit against the collection agency.