Common bankruptcy myth- Everyone will find out if I file- No they won’t!

Even though a bankruptcy filing is public information, it is rare that anyone finds out that you have filed bankruptcy.  Your friends and family and neighbors will probably never know unless you tell them.  It is rare that people check the reports of who filed for bankruptcy.  Unless someone runs your credit, then it is unlikely that anyone will find out that you filed.

In San Diego the filings are listed in the “Daily Transcript” but not too many people read that paper.  Your employer will not be notified and he or she will probably never find out because an employer rarely runs your credit once you are hired.

Your employer cannot fire you if he does find out you filed as that is illegal.  If you have some secret security clearance that presumes you will not file then that would be an exception but you should be able to ascertain this from your employer contract.  Most people though do not have these security clearances.

Your landlord will also rarely find out because he also will not run your credit once you rent from him.  You can continue to rent from your landlord after a bankruptcy without a problem.  If he or she does find out that you filed bankruptcy it is illegal to evict you or discriminate against you in any way because of the bankruptcy.

Your friends and family also do not have to know unless you tell them.  In fact you can keep this financial decision private if you choose.  And your lawyer is not going to tell anyone because he is bound by client confidentiality.

Some people believe that everyone will find out if they file bankruptcy and that simply is not true.  Your secret will remain safe if you wish it to and usually no one will find out unless you tell them.  Once you file and rid yourself of unpayable debt you will just notice that you have eased your stress load and you have more money to pay your bills.  So go ahead and file and experience the freedom, liberation, and fresh start that bankruptcy can provide!

I am a bankruptcy attorney in San Diego.  Please visit my websites at www.farquharlaw.com or www.freshstartsandiego.com.  Or call my office for a free consultation at (619) 702-5015.

Call now for free credit report and analysis!  For a free e-book: “13 THINGS YOU SHOULD DO TO PREPARE FOR YOUR BANKRUPTCY FILING” please send a request by e-mail to: farquharesq@yahoo.com.

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Has a creditor threatened you with jail if you don’t pay them? FDCPA says this is illegal!

Has a creditor threatened you with jail for non-payment of a monetary debt?  This is most probably illegal according to the Fair Debt Collection Practices Act (FDCPA).  Collectors often harass and threaten debtors with all sorts of things that they have no right to threaten.  They will often threaten jailing you if you don’t pay today!  A person just contacted me with this problem and the client was threatened by a creditor to have police show up at their work and arrest them if they did not pay today!  And this creditor did not even file a lawsuit yet!

This is clearly illegal!  With no lawsuit filed there is no judgment and with no judgment no legal right to collect on this debt.  This creditor would have to first obtain this judgment which would give them the right to collect but in California there is no going to jail for owing strictly monetary debts.  And to threaten that police will show up at someone’s work and arrest them when they cannot is a violation of FDCPA section 807(4).

In that section it clearly states that an implication that non-payment will result in arrest or imprisonment unless that action is legal and intended by the party is a violation of this law.  In my client’s case there is no arresting or jailing someone for owning monetary debts so this threat was a violation of the law.  If my client could prove it then we could win damages against this collector.  I told this person to tell the collector that they were recording the call next time and see how fast he hangs up.

Section 807(5) restates this and says that any threat to take any action that is not legal or intended is a violation of the FDCPA.  So this collector violated this section too.  My question is can we get this guy to say this clearly into the microphone so we can replay it for the judge?

So don’t take any crap off of these creditors.  I hate to hear these stories and I answer these e-mails immediately.  We live in a great country where we pride ourselves in our freedom but if these collectors can violate the law with impunity then it threatens all of us.

In a previous blog I discussed how these collectors by far receive the greatest number of complaints to the Federal Trade Commission.  They routinely harass, threaten, bother and annoy people and they are now routinely violating the law I believe.  So know your rights and don’t allow them to bamboozle you.

I am an attorney who practices bankruptcy law in California.  For more information please visit my websites at www.farquharlaw.com or www.freshstartsandiego.com .  Or call my office for a free consultation at (619) 702-5015.  Call now for free credit report and analysis! 

If you or someone you know needs to file bankruptcy please get my FREE E-BOOK; 13 THINGS YOU SHOULD DO TO PREPARE FOR YOUR BANKRUPTCY FILING” by e-mailing me at: farquharesq@yahoo.com.