If you’re in debt and have long-overdue payments, you’re probably familiar with the debt collections process, but you may not realize that there is a way to make those endless collection phone calls stop. There are three key steps you can take to help significantly: hire a bankruptcy lawyer, file for bankruptcy, and notify your creditors that you have initiated the bankruptcy process.
Get a Bankruptcy Lawyer
Deeply in debt? Filing for bankruptcy could give you the clean slate you need to get started with the rest of your life. Many people who are in debt become tired of being hounded by debt collectors who often fail to follow the rules for pursuing overdue debts. They just want the phone calls and letters to stop, but they don’t have the means to pay off the debts now. Bankruptcy is a useful tool to consider if you’re in this situation. Request a consultation with an experienced bankruptcy attorney to learn more about whether bankruptcy is right for you, considering your individual circumstances. Moreover, you may have other options besides bankruptcy to explore with your attorney, such as negotiating of settlements with creditors.
File for Bankruptcy
If you consult with a bankruptcy lawyer and learn that filing for Chapter 7 or Chapter 13 bankruptcy could be beneficial, you will then work with your attorney to complete the legal filing process. As part of this process, you will need to provide your attorney with a list of your outstanding debts or any paperwork you have regarding your debts, such as letters from debt collectors. Information about your outstanding debts will help your attorney identify your creditors to the court and get the debt collectors to stop contacting you. However, we don’t suggest telling the debt collectors that you’re planning to file for bankruptcy. It could spur them to accelerate their debt collection efforts. Instead, talk to your attorney about how to hold off collectors while you get your paperwork to file with the court.
Notify Creditors
As part of the bankruptcy process, the court notifies all of your creditors that you have filed for bankruptcy. They have the opportunity to file proof of the debts with the court. Creditors who properly file a proof of claim could then receive partial or full repayment of the debt, or the debt may be fully discharged, depending on what happens during your bankruptcy case.
No matter what happens to those debts, creditors cannot contact you once they receive notice of your bankruptcy proceeding – it’s against the law. They also have to stop all actions to collect on your debts. There are some limited exceptions to this rule, such as child support. Talk to your attorney to learn more.
Frequently Asked Questions
Should I tell creditors that I’m planning to file for bankruptcy?
We do not suggest that you tell your creditors that you’re filing for bankruptcy. Learning of an impending bankruptcy can lead creditors to accelerate the debt collection process by garnishing your wages, filing a debt collection lawsuit, or repossessing property that you offered as collateral.
Can a debt collector contact me after I file for bankruptcy?
No. Once creditors receive notice of a filed bankruptcy, they are legally prohibited from contacting the debtor without the court’s permission. The same applies to debt collectors a creditor has hired to contact you or send you mail. There are a few limited exceptions to this rule – ask your attorney for more information. Creditors can face serious consequences for violating the rules regarding contact with debtors during bankruptcy.
What should I do if a debt collector contacts me during bankruptcy?
Tell the debt collector that you have filed for bankruptcy, give them the case number, and give them your attorney’s contact information. They may not have received the court’s notice of bankruptcy filing yet. If they have received it, your attorney can take the proper steps to keep them from contacting you again.
Reach Out to a Bankruptcy Attorney for Help With the Debt Collections Process
If you’re fielding calls from debt collectors and need to turn over a new leaf with your finances, reach out to our firm for legal advice. We offer free and confidential consultations for debtors in Beaverton, Oregon. Learn more about your debt-relief options by talking with a bankruptcy attorney at the Law Offices of Alexzander C.J. Adams, P.C. To get started, call us at 503-278-5400 (toll-free: 888-560-8146) or complete our online contact form. We look forward to hearing from you!
