QUESTION
What can creditors do while I am in the middle of bankruptcy?
Asked on Dec 23rd, 2011 on Bankruptcy - Utah
More details to this question:
About 2 months ago I found an attorney that would let me make affordable payments for an eventual chapter 7. He advised me to stop paying my credit card bills and said to tell anybody who calls me about it to call him. I'm just curious as to what exactly can creditors/collectors do to me while I'm in the middle of paying for bankruptcy?
13 ANSWERS
Why don't you ask the lawyer you are paying?
Answered on Jul 08th, 2013 at 2:18 AM
judith runyon
The same thing they could always do if you were not in bankruptcy.
Answered on Jul 02nd, 2013 at 10:47 PM
Bankruptcy Chapter 7 Attorney serving San Diego, CA
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Law Office of Asaph Abrams
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Preparing to file a bankruptcy does not have legal effect. Filing it does.
Answered on Dec 30th, 2011 at 9:43 PM
Bankruptcy & Debt Attorney serving Longmont, CO
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William Edward Zurinskas
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Until you actually file your bankruptcy, your creditors can still bring a lawsuit against you for any delinquent debt. You should notify your creditors in writing (Keep a signed and dated copy) , especially collection agencies and attorneys, of your intent to file bankruptcy and to contact your bankruptcy attorney, who is representiing you on all collection matters. Your bankruptcy attorney (for an additional fee) can also send a letter of representation.
Answered on Dec 28th, 2011 at 1:39 PM
Immigration Attorney serving Salinas, CA
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Law Office of Magnolia Zarraga
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If you have retained an attorney, these are questions you should be asking of him. That is what you are paying for. However generally speaking, creditors can continue to attempt to collect from you until your case is filed with the court. This means creditors can continue to call you, send you collection letters and sue you. Until your case is filed, you have no bankruptcy protection. However, some creditors will back off from calling you if they know you've already retained an attorney to file bankruptcy. But by law they have a right to continue to attempt to collect until your case is filed. If you have an attorney, make a consultation with them, as you obviously are having some unanswered questions about your case. If you don't have an attorney, go schedule a free consultation with a local and experienced bankruptcy attorney.
Answered on Dec 28th, 2011 at 1:12 PM
Glen Edward Ashman
You are not in bankruptcy at all. They can sue you, garnishee you, etc. Until you actually pay for the case and file, you have no protection at all.
Answered on Dec 27th, 2011 at 10:04 PM
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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Prior to actually filing a bankruptcy, creditors can pursue all legal means of collection, including wage attachment, levy or suing you.
Answered on Dec 27th, 2011 at 9:47 PM
Business Bankruptcy Attorney serving Raleigh, NC
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J.M. Cook, P.A.
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Until you file bankruptcy, the creditors can pursue all collection matters.
Answered on Dec 27th, 2011 at 5:12 PM
Bankruptcy Attorney serving Cleveland, OH
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Benson Law Firm
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Creditors are not prohibited from continuing their normal collection procedures while you are preparing the file. However, many do not want to waste time and money collecting if the debt is likely to end up in bankruptcy court.
Answered on Dec 27th, 2011 at 5:05 PM
Bankruptcy Law Attorney serving Campbell, CA
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Ellahie Law Firm
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Once you advise the creditors that they should contact an attorney they are required to stop calling you and to contact your attorney. You may want to follow up with a letter that says that. If they continue contacting you, you may have grounds to sue them for violation of the Federal and/or California Fair Debt Collection Practices Act. Creditors, however, can commence a lawsuit on the debt and sue you. If this happens you should contact your attorney you will need to get the bankruptcy on file to prevent the creditor from obtaining a judgment and then attaching your assets, garnishing your wages etc.
Answered on Dec 27th, 2011 at 3:42 PM
Bankruptcy Attorney serving Hayward, CA
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Carballo Law Offices
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The fact that you are planning to file a bankruptcy case makes no difference except that they are no supposed to contact you to collect while represented. They can sue you and take whatever action is available to collect the judgment such as garnishing your wages and putting liens on your property. You need to file as soon as possible if you need bankruptcy protection.
Answered on Dec 27th, 2011 at 3:22 PM
Alternative Dispute Resolution Attorney serving Ventura, CA
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Zahn Law Office
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Until such time as you file for bankruptcy, you have no protection from creditors. The creditors can sue you, seek a judgment, and enforce the judgment by garnishment, lien, and levy (among other options). Generally, you will stop paying credit cards for two reasons: to save up for paying your attorney, and second, because you are going to discharge that debt anyway, so it is sending good money after bad. I don't know what your payment plan with your attorney is, but I would suggest filing sooner rather than later to avoid creditor enforcement actions against you.
Answered on Dec 27th, 2011 at 3:16 PM
Until you actually file the petition for Chapter 7 with the bankruptcy court, creditors can continue to collect, file lawsuits, garnish, etc. Often if an attorney has indicated that they will be representing you, creditors will give you a little space to get the petiiton filed.
Answered on Dec 27th, 2011 at 2:33 PM