The Scarsdale Daily Voice

Scarsdale, New York

Going Bankrupt and Dealing with the Consequences

September 21st, 2019

It’s not easy to file for bankruptcy. However, it is often the best thing to do. Declaring bankruptcy can allow you to gain a fresh start, something we’ve all needed at one point in time.

One thing to consider when declaring bankruptcy is whether or not you’re fully equipped to deal with all of the aftermath. More often than not, declaring bankruptcy solves more problems than it creates. That being said, you should still be prepared for whatever consequences may come your way.

The most common consequence associated with declaring bankruptcy is a damaged credit score and a loss of assets. However, these don’t always happen. Each bankruptcy case is highly varied and I’ve found it’s best to find an accountant or lawyer who can help you create the best plan for your situation.

Another issue with filing bankruptcy is harassment from creditors. If you’re unable to repay loans immediately, these creditors tend to make nonstop calls and send mail your way.

While most of them won’t resort to harassment, it’s true that some creditors take it too far with the contact. Additionally, some of them resort to defamation of character and other forms of harassment in their endeavors to be paid back.

How to Deal with Harassment from Creditors

If you’re dealing with a lot of harassment from creditors, you can quickly begin to feel overwhelmed. Constant calls and the ever-present threat of financial ruin can cause even the best of us to panic. The first step to getting yourself out of this hole is to understand just what constitutes harassment.

Common Forms of Harassment

Although it’s certainly annoying to deal with creditors, not all of their actions constitute harassment. The most common forms of harassment include defamation, reduction of a credit score, and financial injury. There are two acts, the Fair Credit Reporting Act and the Fair Debt Collection Practices Act, put in place to avoid these types of situations, but they are commonly violated by creditors.

Before you claim defamation, though, make sure that you know for sure that you’re experiencing it. The statements against your character must be false, communicated to a third party without your consent, negligent on the part of the creditor, and you must have experienced some form of harm as a result of the statements.

Granted, none of these are particularly hard to prove, but it’s still good to have a solid account of everything that you have experienced.

If you feel as though you are experiencing any of the above forms of harassment, I highly recommend getting in contact with a lawyer like those at Greenway Law, LLC who can fight on your behalf.

Going bankrupt shouldn’t leave you in such dire straits, but if you are, there are ways to get yourself back on track. Getting a lawyer to help you get things sorted out is just the first step of many that you’ll need to take if you want to have a fresh start.