Many people in Iowa and throughout the United States are overwhelmed with credit card debt, medical expenses, mortgage payments, student loans and other types of financial burdens. If you are one who struggles to make your monthly payments on time, you may have been contacted by creditor regarding your delinquent balance or missed payments. In some cases, however, creditors can cross the line from notifying you of the late payments and harassing you with threats and other tactics used to scare you.

In addition to calling several times a day, including late at night, early in the day and at work, creditors may threaten to press charges, garnish wages and even take away your children. In one case, the Federal Trade Commission fined a company over $3.2 million because of the harassment they used to intimidate clients. Unfortunately, this is not the only case of abuse.

Under the Fair Debt Collection Practices Act, collection agencies are banned from making incessant calls, using offensive language, garnishing wages and threatening to file charges in court. Once you have filed for bankruptcy and submitted all of the paperwork to the court, the trustee appointed to the case will issue an automatic stay. This ruling prohibits creditors from contacting you in any manner. It is crucial that you include all creditors on your bankruptcy paperwork, as these are the companies that will be contacted and given the automatic stay in the case.

This information is intended to educate and should not be taken as legal advice.