What Happens If a Creditor Demands Payment After You Have Filed a Bankruptcy Case?

Posted on : May 1, 2017

Filing for bankruptcy is one of the most important steps you can take in order to get a financial restart. It can be overwhelming to attempt to figure out how to file for bankruptcy by yourself which is why retaining an experienced attorney is strongly recommended for anyone who finds themselves in this situation.

Filing for bankruptcy in and of itself will have a significant impact on several different aspects of your case including receiving an automatic stay that means that creditors can no longer pursue you aggressively for payment of debts. Bankruptcy is a serious matter that can easily feel overwhelming if you’re not sure what to expect. Thankfully, the right lawyer can help you formulate a plan for addressing your bankruptcy concerns as soon as possible. There’s a lot on the line for your future and knowing your rights upfront is important.

It is important to understand your rights and responsibilities as soon as you file for bankruptcy whether it is for Chapter 7 or Chapter 13 and regardless of what state you live in. In the event that a creditor attempts to pursue payment of a debt after you’ve filed for bankruptcy, if they have done so without the permission of your bankruptcy court, this is a violation of the automatic stay provision.

The creditor has to return property to you if they repossessed property like your vehicle after you filed your bankruptcy case. The court can even go so far as to punish a creditor who has violated the automatic stay knowingly. This can also lead to the creditor being held liable for any harm that is caused to the debtor. The creditor may not be on notice of the bankruptcy case if you did not list it individually on the court’s schedules.

This is why it is important to inform the creditor of your bankruptcy and request a discontinuation of the collection efforts. Give the creditor your bankruptcy attorney’s name and address if the creditor refuses to stop pursuing you. All of the steps that you take leading up to a bankruptcy are important for protecting your rights and allowing you the fresh start you need.

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