When you file for bankruptcy creditors are automatically prohibited from contacting you to collect their debt and are also prohibited from initiating or maintaining a lawsuit for collection. That said, there are instances where lenders continue to make contact, and this can cause undue stress and anxiety on you while you are trying to get through your bankruptcy case. If this happens to you, you do have options and should exercise them to protect your finances.
If a creditor calls you during bankruptcy, it is imperative that you take the following steps:
- Document the date and time of the call.
- Take down the caller’s name and ID number if they have one for their company.
- Record the call if possible, and save all copies of letters you receive.
Once you have gathered the data regarding the calls, contact your bankruptcy attorney for help. You do have the ability to bring an action within your bankruptcy against the lender for the unlawful contact. The action is one claiming the creditor has violated the bankruptcy laws, and in particular the automatic stay. Bankruptcy is designed to give the honest, but unfortunate, debtor a fresh financial start. It is near impossible to get back on your feet and come up with a workable budget while being hounded by collectors or by being dragged into court to sort out your debts. The bankruptcy court’s role is to make distribution of what assets you do have available, if any, to satisfy your debts while letting you eliminate debt that is overwhelming. We have experience holding creditor’s feet to the fire when they show a total disregard for the bankruptcy rules, and can help you make choices within your bankruptcy case that work for you. If you have received calls, letters, or are being sued by a lender but have filed for the protection of bankruptcy, contact us for help. We will take the necessary steps to put an end to the harassment, so you can breathe easy and come up with a plan for your finances that will work for years to come.
For more information about bankruptcy, contact us at www.DsouzaLegalGroup.com. We help by explaining your options and developing a plan that meets your needs.