Collecting on Your Debt After Filing for Bankruptcy

Most consumers file for bankruptcy because the amount of debt
they have amassed is more than they are capable of paying
off.  Issues such as a loss of employment, health problems, or
work injuries can cause debts to pile up.  Accruing debt
causes financial stress, especially when being hounded by creditors
and debt
collectors
wanting money that you do not have.  Filing for
bankruptcy puts a stop to this conduct and allows consumers a fresh
start essentially prohibiting creditors and collectors from taking
action against them.

When you file for bankruptcy, the Bankruptcy Court grants an
automatic stay.  This means that all collection activities
must cease any collection attempts including telephone calls,
letters and garnishments.  Any creditor who attempts to
collect on your debt during this time will be in violation of the
law.  Regardless of the legal ramifications, collectors often
times ignore or are ignorant of the law and continue their
collection efforts-which is still no excuse.  Make sure to
notify the creditor or collector that you have filed for bankruptcy
and they are in violation of the law and must cease all collection
efforts.  The bankruptcy code and the
Fair Debt Collection Practices Act
(“FDCPA”) is clear that an
automatic stay absolutely bars a collection agency from continuing
its collection efforts during this period.

If a creditor insists that it has not received notice from the
court that you have filed for bankruptcy, offer to provide the
paperwork to the creditor.  If the creditor still refuses to
cease its collection efforts, provide the collector with the name
and contact information of your attorney.

Going through a bankruptcy filing is traumatic enough for a
consumer and the added pressure of collectors calling attempting to
collect on debt that you cannot afford is unnecessary and in
violation of the law.  Knowing your rights will protect you
from the unscrupulous treatment of debt collectors. 

All creditors and collectors have a duty to use reasonable means
of determining whether or not you have filed for bankruptcy before
attempting to collect on your debt.  If you have filed for
bankruptcy and are still being harassed contact SmithMarco P.C to
discuss your situation in greater detail and to see how we can be
of assistance to you.