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

What Is a Waiver of Discharge and Why Would Anyone Want One?

If a creditor claims that someone who is about to file New York bankruptcy has waived his or her right to discharge the debt, its claim will almost certainly be rejected. Anyone who signs a form promising to not discharge a debt is probably going to be protected by the law. It would defeat the

Read More »

Qualifying for Chapter 13 Bankruptcy Is Very Easy

Chapter 13 New York bankruptcy can be a more flexible way to get a fresh start than chapter 7 or chapter 11, but debtors might be concerned that it’s hard to meet the requirements to file. On the contrary, the requirements for filing in chapter 13 are light. They’re mostly confined to 11 U.S.C. §

Read More »

6 Things Creditors Can Do When Their Debtors File Bankruptcy

My practice represents both debtors and creditors, and often the creditors (especially the smaller ones) are unclear on the process for their end when someone who owes them money files New York bankruptcy. It’s fairly straightforward, and there are definitely circumstances in which it helps to hire a lawyer. (1)  Usually the first thing that

Read More »

What to Do If You Are Moving While in Bankruptcy

Americans are a mobile people, so it’s not unheard of for them to move while their bankruptcy cases are still pending. Fortunately, bankruptcy is a federal matter so it’s fairly easy to transfer a case from one bankruptcy court to another if the move is a significant distance. Whether yours is a New York bankruptcy

Read More »

What Chapter Is Best for a New York Business Bankruptcy?

“Business bankruptcy” isn’t a legal term as there’s no designated chapter for businesses or businesspeople to file bankruptcy in. Thus, the correct question is which chapter is best for businesses and their principals to file in. The answer depends on the structure of the business and the principals’ goals for running it. For sole proprietorships

Read More »

It’s Not Always Worthwhile to Pay Off a Chapter 13 Plan Early

For people who’ve filed chapter 13 bankruptcy attorney Brooklyn NY ,  the question of whether to pay off the repayment plan early sometimes arises. It’s a tempting idea. Repayment plans don’t leave much discretionary income for debtors, and escaping the process can feel like a reward in itself. However, there are a few reasons to

Read More »
Scroll to Top