Changing a name to avoid creditors can seem harmless, but it can cause intense legal issues. While a legal name change can alter your identity on paper, it will not prevent creditors from finding you or eliminate your financial obligations. Creditors have multiple ways to track debtors, and avoiding debt through a name change is neither an effective nor a legal solution. Let’s start breaking down the basics.
How Creditors Track Debtors
Even if you change your name, your financial history remains intact. Here’s how creditors can still locate you after a name change:
- Credit Reports: Credit bureaus record name changes, and your old and new names will appear on your credit file.
- Social Security Number: Since debts are linked to your SSN, creditors can still access your financial records.
- Public Records: Legal name changes are documented in court and government records, which are accessible to creditors.
A name change does not erase any outstanding debts. If you owe money to creditors, you are still legally responsible for repaying those debts, even under a new name. Changing your name to avoid creditors may even constitute fraud and lead to legal consequences. In the paperwork associated with your name change in Oklahoma, the application and order will usually have a line in there stating you are not seeking a name change to avoid debts. If you sign off on this knowing you plan to do the opposite, you could be perjuring yourself.
Legitimate Ways to Stop Creditor Harassment
If you are struggling with persistent creditor calls, changing your name is not the solution. Instead, consider these legal alternatives to address your debt:
1. Send a Cease-and-Desist Letter
Under the Fair Debt Collection Practices Act (FDCPA), you have the right to request that debt collectors stop contacting you. A formal cease-and-desist letter can force creditors to only communicate with you in writing, reducing harassing phone calls. You can also register your number on the National Do Not Call Registry. Essentially, this makes it to where the creditor could face legal ramifications if they continue to reach out once they know you’re on the list.
2. Verify the Debt
Before making any payments, request a debt validation letter from the creditor. This ensures the debt is legitimate and that they have the legal right to collect it. At times this will be in the form of an itemized bill that clearly details the financial obligation.
3. Negotiate a Settlement
Many creditors are willing to negotiate a reduced payoff amount or set up a payment plan. Some creditors will accept up to a 60% reduction depending on how large the debt is. This can help you clear your debt without facing aggressive collection actions.
4. Consider Bankruptcy
If you are unable to repay your debts, filing for bankruptcy may be an option to discharge or restructure your obligations. Bankruptcy laws offer protections that can legally stop creditor harassment and provide a fresh financial start. If you qualify, a Chapter 7 bankruptcy can discharge all of your unsecured debt.
Creek County Civil Attorneys
Changing your name will not help you avoid creditors calling or erase your debt, as financial obligations are linked to your Social Security number and credit history. Instead of relying on a name change, explore legally sound options such as negotiating settlements, requesting creditor verification, or seeking bankruptcy protection if necessary. If you are facing persistent debt issues, our team at Creek County Attorneys can help you. Call us at 918-209-3709 for a free and confidential consultation or ask a legal question here.
