Bankruptcy

DEALING WITH CREDITORS

Your lawyer can help you deal with your creditors before, during and after bankruptcy proceedings. Before starting bankruptcy proceedings, you are protected by laws that prohibit creditors from harassing you to collect money. Bill collectors may not contact you at unreasonable times at home, and they may not embarrass you by telling your friends, relatives or employers about your debt. Bill collectors may not contact you at work if they know your employer disapproves. If you have a lawyer, bill collectors may only contact your lawyer.

During bankruptcy proceedings, you will receive additional protection from bill collectors. At the beginning of the proceedings, the court will order your creditors to stop their collection activities, including lawsuits, wage garnishments, repossessions and telephone calls demanding payment. It is unlawful for your employer to fire you for seeking bankruptcy protection.

After the bankruptcy proceedings have been completed, you must take care when dealing with creditors. Some creditors may try to collect debts that were discharged by the bankruptcy proceedings. These creditors may ask you to renew the debt by signing an agreement to pay it. Consult your lawyer when you are contacted by creditors so that you do not inadvertently obligate yourself to pay an old bill that has already been discharged by your bankruptcy.