I’M THINKING OF BANKRUPTCY BUT CAN I STILL SUE HARASSING COLLECTION AGENCIES?

I’M THINKING OF BANKRUPTCY BUT CAN I STILL SUE HARASSING COLLECTION AGENCIES?

As discussed elsewhere in this website, the decision to file bankruptcy is a very serious one that should be carefully evaluated with an experienced bankruptcy lawyer.

If you have decided to file bankruptcy, but you also have been the victim of harassing conduct by debt collectors or collection agencies, you can sometimes still sue even if you are filing bankruptcy.

Chapter Seven bankruptcy means that, in essence, all of your assets and all of your liabilities are put in the hands of the trustee of the bankruptcy court. For most people filing, they will really not have any assets that are not exempt. For example, you can keep a certain amount of equity in your home and in your car. You can keep a certain amount of personal property (clothes, furniture, etc.) and this sometimes includes lawsuits that you have or will shortly file against harassing debt collectors. This means that you can sue the debt collector and sometimes keep at least a portion of the money. This has to be carefully coordinated with your experienced bankruptcy attorney.

If you file a Chapter Thirteen bankruptcy, then you are paying money into court for your debts. This is why it is often called “Debtor’s Court”. If you have a valid claim for harassment, then it is likely the money you would collect will go into court. But this is not a bad thing as it means you will get out of debtor’s court quicker.

The bottom line is if you have a potential claim against a debt collector or collection agency for harassing you then you should explore that claim with a knowledgeable attorney. Even if you are about to file bankruptcy, it may still be helpful to you to pursue the claim. Even if you don’t get a recovery, you have the ability to protect yourself against the collection agencies and debt collectors who have violated the law by harassing you.

If you find yourself in this situation, please contact us to see if we can help you.