Bankruptcy and Bill Collectors - Stop Them Dead in Their TracksBankruptcy and Bill Collectors One of the major benefits of filing for protection under Chapter 7 bankruptcy is that many creditor actions are stopped. When creditors or collectors become aware that you have filed for bankruptcy protection, he or she must stop all efforts to collect the debt. First time home buyers should keep in mind that this will also make it difficult for them to buy a home. After your bankruptcy is filed, the court mails a notice to all the creditors listed in your schedules. This usually takes a couple of weeks. If this is not soon enough, then you should have your representative inform the creditor immediately. If a creditor continues to use collection tactics once informed of the bankruptcy they may be liable for court sanctions and attorney fees for this conduct. Your attorney deals with your creditors. It may be the only time you ever have the luxury of saying "you'll have to talk to my lawyer." For now you will stop them from bothering you. Bankruptcy, stopping bill collectors is serious business. So first time home buyers may want to try credit repair if their desire is to buy a home soon. If you can't go that route, then you may want to wait a while before deciding to buy a home. Disclaimer: This information deals with consumer bankruptcy. Each state has its own bankruptcy laws, so you need to check with your state for details. The information is provided for general information purposes only and is not intended to be a legal opinion nor legal advice nor is it intended to be a complete discussion of all the issues related to the area of consumer bankruptcy. Every individual's factual situation is different and you should seek independent legal advice regarding specific information. Lastly, if you would like to leave Bankruptcy and Bill Collectors and return to our Bankruptcy main page, click here. Or return to First Time Home Buyers home page.
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