Once you file for bankruptcy, it is expected that you will stop getting calls from a collection agency. But, what if you don’t? For the collection agency, it is a good business. They are contracted by the lending agency to pursue debt payments, and they make their profits by taking a fee from the debt amount owed. It is not in their interest when a debtor decides to file for bankruptcy.
Then the debt is no longer valid and the collection agency can’t follow up on it. Ideally, they should leave the debtor alone.
When you file for bankruptcy, the law dictates that the creditors and collection agency can’t get in touch with you or pressure you for the debt payment. The unique aspect of bankruptcy is that it is a legal process that absolves you of unmanageable debt. The legal term for this is called Stay of Proceedings. However, there are a few of them that won’t. So what if you are still being harassed by a collection agency after filing for bankruptcy?
Inform them that you have filed for bankruptcy
There is a chance that the collection agency is not yet aware that you have filed for bankruptcy. If they call you, inform them over the phone. Also, you can send a mail to your creditor and collection agency. Give them your Trustee’s name and contact number. Yet, I’ve seen collection agencies that are slow on the uptake. S what else can you do?
– Screen their Calls
Keep track of the numbers through which the collection agency is calling you. You can either note down these numbers and avoid picking them up, or ask your service provider to block them.
– Change your Phone Number
At times, a collection agency could terribly harass you by calling every hour. Your best option would be to change your number. Getting a new number is not difficult. To prevent the collection agency from getting your new number, don’t publicise it, give it to only those who must have and don’t provide your new phone number on Facebook or any other sites.
– Don’t Give out Your Identity
If you do pick a call from a collection agency, do not reveal your identity. A collection agency only goes after the person who has defaulted. You are in no obligation to give out your identity, so don’t. However, beware, some collection agencies try to pose as recruiters or other bogus professionals.
File a Complaint
Talk to your trustee and obtain the number for the OSB and Service Alberta. Collection agencies are governed by provincial regulations so a complaint can have serious repercussions.
Take Legal Action
If the collection agency continues to contact and harass you even a month after the filing for bankruptcy, you are entitled to take legal action. This will get them to back off.
Discuss your options with your Trustee and debt consultant. They are two best people who have the knowledge and experience to deal with them.
