Filing for personal bankruptcy in Indiana can provide significant relief from overwhelming debt. However, it’s important to understand what debt collectors are no longer allowed to do once you’ve filed for bankruptcy.
Harassing you
Debt collectors cannot harass you. This includes:
- Threatening you with violence or harm.
- Using obscene or profane language.
- Calling you repeatedly, before 8 a.m. or after 9 p.m. without your permission.
- Calling you at work if you tell them in writing not to.
They must also stop contacting you if you tell them in writing to stop or to contact only your attorney.
Continuing collection efforts
Debt collectors must stop all collection activities once you file for bankruptcy. They cannot send bills, make collection calls, or pursue any form of debt recovery for debts discharged in bankruptcy.
If debt collectors ignore this rule and continue their efforts, they can face legal penalties and fines for violating bankruptcy laws.
Contacting anyone in your life
Debt collectors cannot contact your employer, friends, or family about your debt once you have filed for bankruptcy. The law ensures your privacy and prohibits collectors from discussing your financial situation with anyone other than your attorney.
Threatening to have you arrested
It is important to remember that debt collectors cannot threaten to arrest you for not paying your debts, as bankruptcy protects you from such threats. No one can intimidate or mislead you with false claims of arrest or legal action.
Misrepresenting facts
Debt collectors cannot misrepresent the status of your debt or your bankruptcy or lie about how much you owe. They cannot claim that you still owe money after bankruptcy has discharged the debt.
Filing for personal bankruptcy provides essential protection from debt collectors. Understanding these protections can help you navigate your financial recovery confidently.
