In many circumstances, the consumer has rights against the collector which might avoid the need for personal bankruptcy relief. One weapon is the Fair Debt Collection Practices Act or FDCPA.
The FDCPA prohibits contracts from third parties if the collector knows the debtor is represented by a bankruptcy attorney, otherwise contact with third parties is permitted but only to locate the debtor. In practice, a writing is required in advising of bankruptcy attorney representation to avoid he said she said dispute.
The collector must inform the debtor in every communication that the communication is from a debt collector. The collector must send the consumer dispute verification invitation within five days of initial contact, and the collector must suspend collection until the debt is verified if the dispute is received within 30 days.
A debt collector may not harass, oppress, or abuse a consumer, but this is not defined and is left up to the courts. The collector may not publish a list of nonpayers, except to credit bureaus, or use obscene or profane language, or make repeated telephone calls for annoyance purposes. Debt collectors may not use false or misleading means to collect a debt, and may not collect more than what is justly owed. Actual damages, $1000 statutory penalties, and attorney fees may be recovered. After filing personal bankruptcy, and the automatic stay is in place, it’s taboo for collectors to call you at all.
From your Bankruptcy attorney’s point of view, a tape recording of an abusive call is best. Second best is a detailed narrative of what took place and how you felt. Be aware that it is very difficult to convince a judge or jury that you are in the right, so the more proof you have the better.
