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Bankruptcy and Bill Collectors - What to Do?

What can you do about those bill collectors?

Bill collectors can be stopped dead in their tracks during a bankruptcy. Know your rights by reading what this page says about debt collection and debt collectors.

One of the major benefits of filing for protection under Chapter 7 bankruptcy is that many creditor actions are stopped. This means that debt collection efforts and foreclosure is halted.

Filing Bankruptcy Can Stop Debt Collection

Don't get frustrated as this woman with all the bills. Seek help.

Do you Have a legal problem? Come to LegalMatch and find pre-screened, qualified lawyers in your local area. Many people have found this source helpful. 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.

Call to Stop Debt Collectors

If this is not soon enough, then you should have your representative inform the debt collectors immediately. If a creditor continues to use debt 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 this 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.

Don't Want Bankruptcy! Here's Some Other Options.

You may want to try to repair your credit yourself first. Here's some helpful tips to do Credit Repair Yourself.

There are also some alternatives you may want to investigate.

Don't hesitate to ask questions if you want further help at Have a Question. I'm not an attorney but have helped others to improve their credit and even helped those who have filed bankruptcy to get a mortgage. So go ahead....pick my brain, I'll help where I can.

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.

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