What to Say When Creditors Call When Filing for Bankruptcy?
Although consumer bankruptcies seem to be on the decline, according to the American Bankruptcy Institute, there were 1.5 million bankruptcy filings in 2010. A person can file for bankruptcy with or without the aid of a lawyer, but obtaining a lawyer can eliminate much of the harassment that follows a person on the verge of declaring bankruptcy. Creditors will attempt to collect unpaid debts until they are notified by the court that a bankruptcy filing is complete.
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Begin Your Filing
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Obtain the services of a bankruptcy lawyer, or begin the filing yourself. Complete the proper paperwork, depending upon your type of bankruptcy, and make certain the paperwork is submitted to your attorney or to the court, along with the appropriate filing fees. Don't volunteer information about your bankruptcy plans to any creditors who contact you until you have filed or are extremely close to filing. Creditors can use the warning to file a last-minute lien against your property or assets in hopes of securing some repayment before your bankruptcy is approved.
Respond to Your Collectors
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Refer collectors to your attorney if harassment is an issue. It is illegal for creditors to contact a person after he has informed them to call his attorney regarding a debt collection matter. Simply tell the collector the name, phone number and address of your attorney, and request that the collector contact the law office in the future regarding your account. Ask politely not to be contacted directly again, and hang up the phone.
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Keep Records
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Make notes about each phone call, including the time, date and name of the collector with whom you spoke. If you do not have an attorney, consider sending letters to your creditors informing them of your filing and referring them to your case number with the clerk of court where the filing occurred.
Confirmation From the Court
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Wait for your creditors to be formally notified by the court. Once the bankruptcy court sends out a notice to your creditors about your bankruptcy, it is illegal for them to contact you in any way. Consult an attorney if harassment continues because you might be eligible for damages through a lawsuit.
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References
- Showell Blades Bankruptcy Law: What Do I Do If My Creditors Call Me After I Hire You?
- Castle Law Office: What Do You Do If Creditors Contact You After a Bankruptcy?
- American Bankruptcy Institute; First Quarter Consumer Bankruptcy Filings Fall 6 Percent From 2010; John Hartgen; April 2011
- The Bankruptcy Lawyer; What Are the Different Types of Bankruptcy?; John Francis Murphy, Esq.
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