Free Consultation
The office is open as per the NYS Covid-19 guidelines. We are now doing both in-person and telephone consultations. Please call the office at 718-855-6840 to schedule a time to speak with one of our experienced bankruptcy attorneys.

Why Would a Debt Collector Ask for Confidentiality in a Lawsuit Settlement?

It’s not uncommon for debt collectors to break the law when trying to recover money from debtors. Usually, their actions run afoul of the Fair Debt Collection Practices Act (FDCPA) or the Telephone Consumer Protection Act (TCPA). Violations of these federal statutes and their New York analogues can result in compensation for you and even your attorney as well, which makes suing them all the more beneficial if this has happened to you. Sometimes, though, debt collectors don’t want to go through the hassle of a trial when they know debtors’ cases are solid, and instead they will offer to settle the cases. This is fine and good, but what if the debt collector asks for a confidentiality agreement regarding the facts of the case?

Whether stipulating to a confidentiality agreement is a good idea depends on what the collector doesn’t want you to discuss. If the debt collector doesn’t want you talking about the fact that you filed the lawsuit at all—even though it’s a matter of public record—it might be worthwhile to pass. The purpose isn’t so much to protect the debt collector from any harm, but instead its goal is to hope that you mess up. If you tell a friend or neighbor, write about your experience in an op-ed, or communicate about the case in some other way, the debt collection company will probably have a pretty decent case against you.

Another goal might be to hamper your lawyer’s practice. By signing this restrictive an agreement, your lawyer won’t be able to use what the debt collector in your case did as an example of what might happen in debt collection cases. Attorney advertising, conferences involving other lawyers, and public engagements would all be off-limits.

The other main type of confidentiality a collector might ask for concerns the amount for which you settled your case. This is more defensible. Yes, your lawyer won’t be able to use that in his or her advertising, but its goals aren’t to entrap you. Rather, it’s trying to ensure that other people don’t think it’s an easy target and will shell out large sums in settlements. You might not care so much about the debt collectors’ future legal problems, but whether you would want to accept this kind of agreement is your call, and probably won’t prejudice you further down the road.

For more questions about bankruptcy, the automatic stay, effective strategies for dealing with foreclosure, and protecting your assets in bankruptcy please feel free to contact experienced fair debt collection practices act Bruce Weiner for a free initial consultation.

Rosenberg, Musso & Weiner, L.L.P
26 Court St # 2211
Brooklyn, NY 11242, USA
718-855-6840
http://nybankruptcy.net/

Recent Posts

The Benefits of a Short Tax Year Election to a Bankruptcy Filing

The last thing people who are considering filing bankruptcy in New York are probably interested in is filing two tax returns in one year.  Yet it is not only possible but also worthwhile to do in certain circumstances. First, what are we talking about? Federal law allows individual debtors (i.e. non-businesses) in chapter 7 or

Read More »

‘Abandoned’ Business Assets in Bankruptcy

It’s a sad truth that many businesses in New York fail, prompting twin chapter 7 bankruptcies for both the business and the owner. The two most common causes of businesses shutting their doors is lack of sales (obviously) and liquidity problems, which usually involve solid sales, but the business nevertheless can’t pay its creditors because

Read More »

Strategies for Preventing Repossession of Your Vehicle

Repossession agents (“Repo Men”) have unusually dangerous jobs. In fact the Repo Times (yes, there is an online publication dedicated to repossession news) has an entire “News” section that reports on the various incidents involving people attacking repossession agents. So, it’s important to remember that these are just people doing their jobs. They may be

Read More »

How Much Debt Do I Need to File Bankruptcy?

A common question raised by people who talk to a New York bankruptcy lawyer is “Do I have enough debt to file bankruptcy?” It’s a sensible question to ask because we tend to think that the law imposes minimum thresholds and other requirements in many circumstances, like speed limits. For a straight liquidation, chapter 7

Read More »

What is a Chapter 11 bankruptcy?

What is a Chapter 11 bankruptcy, do they ever happen in Brooklyn, NY, and do I need Chapter 11 bankruptcy attorneys to file a Chapter 11 case? 1.  Chapter 11 bankruptcy is “reorganization,” as opposed to Chapter 7 “liquidation.”  It’s frequently  used by corporations that need bankruptcy protection.  And it’s also often used by individuals

Read More »
Scroll to Top