Dealing with Creditors Before and After Bankruptcy
While bankruptcy can provide a fresh start, it can also be accompanied by complexities that require careful navigation. Dealing with creditors is one such difficulty that can be particularly stressful for bankruptcy clients.
With that in mind, we’re sharing an overview of key considerations when dealing with creditors before and after bankruptcy. As always, our team is here to help you through every step of your bankruptcy journey. Give us a call when you need us.
Ahead of Bankruptcy:
You Are Protected Against Unfair Debt Collection Practices. The Federal Fair Debt Collection Practices Act shields you from unfair collection tactics, setting strict rules for how debt collectors can interact with you.
You Do Not Need to Tell Creditors Before Filing. You’re not required to inform creditors about your bankruptcy plans in advance. Once filed, the court notifies them, providing you a reprieve from their calls.
It’s Important to Organize Your Creditor Information: Having a complete list of creditors is crucial to ensure everyone is notified of your bankruptcy, halting future collection efforts.
After Filing:
An Automatic Stay Protects You From Creditors. This legal provision stops creditors in their tracks, protecting you from collection attempts as you navigate bankruptcy.
You Can Take Action Against Persistent Creditors. If creditors ignore your bankruptcy and continue to reach out, remind them of your case number. Persistent, unauthorized contact may lead to further legal action.
Rebuilding Your Credit: A bankruptcy may remain on your credit reports for as long as 10 years. In many cases the bankruptcy filing improves a credit score because it prevents further negative reporting. With positive reporting, such as timely student loan payments or mortgage payments, you can improve your credit score dramatically.
Creditors’ Rights in Bankruptcy:
Keep in mind that creditors have their own set of rights, including attending creditors’ meetings and filing claims. As always, legal counsel will be there to guide you through any such interactions.
Please reach out to us if you are considering a bankruptcy filing. You can contact our office at ravosalaw.com or call us at 508-655-3013.
This is only intended to be information and does not constitute legal advice, nor does it create any attorney-client relationship with the firm.