QUESTION
If you are considering bankruptcy should you tell your creditors that is your plan or keep this from them?
Asked on Jul 14th, 2011 on Bankruptcy - Alabama
More details to this question:
We have a situation wherein my fiance was getting divorced and going to Iraq a couple of years ago. When time came to sign the property settlement he didn't even read it because he just wanted out. When I met him he didn't even have a copy. As it turns out he didn't go to Iraq. The settlement has him paying 3 credit cards that are hers but say JOINT in the papers. He can't afford to pay these and is thinking of bankfuptcy but doesn't know how to declare the credit cards or property settlement. Additionally, the decree says that he is to pay her for the cards, not the company, and she is to continue to receive the bills! Meaning he never gets to see them. Now that he hasn't paid she is suing him for contempt and additional interest on the cards. She told him months ago that she had got a debt consolidator to lower the amount owed but that isn't mentioned in the petition either. HELP. Can he just put the divorce property settlement on the chapter 13 bankruptcy?
1 ANSWER
Workers Compensation Attorney serving Greensboro, NC
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Duncan Law, LLP
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Different attorneys may have different answers to this question. However, we encourage our clients to go ahead and tell their creditors when they call. I don''''t think it is necessary for you to look up the number and call each of your creditors to notify them but if they are calling then it is usually a good idea to let them know you are filing and direct them to contact your attorney.
We encourage our clients to do this because if the creditor knows you are filing bankruptcy then they will likely stop calling you (as long as you file within about a month or so from letting them know). Also, all of your creditors will be officially notified of your bankruptcy filing when they receive notice of your creditors'' meeting.
I know part of the fear that some attorneys have is that a creditor may expedite the process of filing a lawsuit. The reality is, in most situations the bankruptcy will nullify the lawsuit so it would likely be a waste of the creditor''s time to file a lawsuit.
So in short, yes - tell your creditors that you are filing bankruptcy so you can avoid the non-stop phone calls.
Terry Duncan
Charlotte, NC Bankruptcy Lawyer
Answered on Jul 14th, 2011 at 1:40 PM