Why Are You Being Contacted? How to Make Creditors Go Away

One of the biggest perks of a bankruptcy filing is being left alone by creditors. Once a consumer gets behind on paying their bills, creditors can take numerous annoying measures to obtain the money owed to them. So if you're filing for bankruptcy, why are you still getting harassed by creditors? Read on to find out more about some possible reasons you are being contacted how to handle that contact after a bankruptcy filing.

Understanding the Automatic Stay Powers

All contact between a creditor and the debtor must cease with a bankruptcy filing. No contact means no:

• Phone calls
• Letters
• Emails
• Texts
• Foreclosure actions (temporarily)
• Repossession actions (temporarily)
• Legal proceedings
• Wage garnishment (expect tax or child support liens)
• Property liens (expect tax or child support liens)

The Debt Cannot be Discharged

There are certain debt categories that don't fall under the protection of the automatic stay. Some tax debts, student loan debts, child support debts, spousal support debts (in some cases), legal fee debts, victim restitution debts, and more cannot be included in a bankruptcy. Collection activities tied to a debt that cannot be discharged with bankruptcy can continue unabated.

The Debt Was Reaffirmed

In some instances, the debt is based on collateral and you want to keep that property. Most debt reaffirmations concern auto loans secured by the vehicle. If you wish to avoid losing the car, you might enter into an agreement to continue making payments so that you can keep it. If you fail to live up to your end of the bargain and default, they have the right to repossess the vehicle regardless of the automatic stay.

The Debt Was Incurred After the Filing

Don't assume that you can quickly apply for a few credit cards or other debts and then have them discharged using bankruptcy. If you gained new credit after the filing, you are 100% responsible for paying it.

The Creditor is Unaware of the Filing

The automatic stay takes effect immediately after you file, but creditors may not receive official notice about it for up to a week. If you list a creditor on your bankruptcy paperwork, they will be sent a notice of the filing. Most creditors understand and respect federal bankruptcy rules, but you might need to give them a few weeks to get up to speed after a filing. If you get contacted by a creditor after you file, just give them the name and phone number of your bankruptcy lawyer and your federal case number. Court orders and injunctions against creditors who ignore the automatic stay are also possible. Speak to your consumer bankruptcy lawyer to find out more.