When the phone calls from creditors become constant and annoying, it might be tempting to dangle the word "bankruptcy" when speaking to them. Whether you have already filed or are just getting ready to make that move, it's helpful to know what to say and when to say it when dealing with creditors. Read on to learn more about informing your creditors about filing for chapter 7 bankruptcy.
Before You File
If you are considering a bankruptcy filing but have not yet spoken to a bankruptcy attorney, it may not help you much to mention it to creditors. Bankruptcy is a serious legal matter, and creditors have a great deal of respect for it. Until you take action, however, you are not very likely to have an influence on the collection practices of creditors. That means that creditors can continue to phone you, send you threatening letters, email you, and demand to be paid what is owed on a debt.
When You Meet With A Bankruptcy Attorney
Many filers take their time when making the bankruptcy decision. A bankruptcy filing can affect every area of your life, and a full understanding of the consequences is vital. Most filers are concerned about the loss of property through bankruptcy seizure and liquidation as well as the long-term effect on their ability to use credit in the future. It's important to hand your financial burden over to a bankruptcy attorney so that you will gain an understanding of what might happen if you file.
During the period between your first meeting with a bankruptcy attorney and your actual filing date is a crucial time. The information your attorney provides to you must be used to make a decision about filing and in addition, you might need to:
- Gather important documents needed for the filing.
- Gather money for the filing fee and attorney fees.
If you have met with your attorney but have not filed, you should provide creditors who call you with the name and phone number of your attorney. By law, they can still contact you, but the collection actions might be reduced.
After You File For Bankruptcy
Once you file your bankruptcy, the automatic stay goes into effect. Creditors are not permitted to contact you for any reason once that happens. If a creditor has not learned of your filing yet and contacts you, you should provide them with your federal case number and the contact information of your attorney. If you continue to be contacted by a creditor after a filing, let your bankruptcy know about it. Speak to your attorney to learn more.
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