Debt Collection After A Bankruptcy

: Chris Lee Law Firm

  Filed under: Bankruptcy

debt collectionOne of the biggest advantages to filing bankruptcy is the automatic stay order, which prohibits debt collectors from contact you and making collection attempts. This order offers protection during the time you are in bankruptcy, but what happens after bankruptcy?

Mixed Signals

If your case is dismissed, you are no  longer afforded the protection under the automatic stay and creditors can resume collection activity. If your debts are discharged, you are essentially no longer liable for these debts and the creditor is to reflect that these debts have been satisfied. However, there are instances in which people have had creditors resume collection activity after a debt discharge.

A creditor may attempt to resume collection activity after a bankruptcy discharge for two reasons: (1) they never received the notification of the bankruptcy filing to begin with or (2) the debts were not properly cancelled out, and instead were “written off”. If the creditor never received the notification of the filing all you need to do is provide the creditor with the documentation from the bankruptcy court indicating that they were included in the filing and the debts have been resolved. Debts that have been cancelled out or written off basically sit dormant in a file and usually go unnoticed. Again, you would need to notify the original creditor of the inclusion of the debt in the bankruptcy filing.



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