Collection Agent & Creditor Harassment
Creditors and collection agencies may not discover the bankruptcy filing right away, but once the creditor is informed of the bankruptcy filing and provided with the basic information about the case, such as the chapter filed, the date filed, and the case number, it must take no further action, unless it obtains bankruptcy court authority to proceed with its collection efforts, and the court’s granting of such authority would be very rare.
Filing Bankruptcy Stops Collection Agency And Creditor Harassment
Creditors holding nondischargeable obligations, such as taxing entities, student loan lenders and guarantors, and ex-spouses entitled to past or future child support or alimony, must also cease their collection efforts against assets of the bankruptcy estate, at least until the date of discharge, which in most Chapter 7 bankruptcy cases is approximately four months after the bankruptcy petition is filed.
If creditors continue to call after the filing of the petition, be ready to provide your name, the date the petition was filed, the case number, the chapter, the district in which you filed, and the identity of your bankruptcy attorney. If the creditor persists, notify the Law Offices Of Russ Wyatt and we’ll make it very clear to the creditor that any and all further collection efforts will constitute an actionable violation of the automatic stay provisions of 11 U.S.C. Section 362(a).