Who Deals With Creditors During The Bankruptcy?

Once the bankruptcy case is filed, an automatic stay is created. This automatic stay prohibits creditors from contacting debtors directly and prevents further collection efforts. In many instances, the creditors will not receive notice of the bankruptcy proceedings or will be contacting debtors during the interim of the filing and the time in which notice is received. In those instances, the debtor can advise the creditor of the case filing information or refer that creditor directly to their lawyer’s office.

If a creditor continues to contact a debtor in violation of the protections of the automatic stay, the debtor can refer that matter to his attorney. The bankruptcy attorney will then contact the creditor so that collection efforts cease or will file an appropriate motion within the bankruptcy court in an effort to sanction the creditor.

Unfortunately, some creditors are collecting on old debt from out of the country. These creditors often violate existing laws such as the Fair Debt Collection Practices Act. In these cases, enforcement of bankruptcy and non-bankruptcy laws is difficult.

Lastly, there are attorneys who specialize in assisting debtors against creditors who violate collection laws. If you live in Chicago or its surrounding suburbs, you can seek information from Attorney Richard Meier. He can be reached directly at 312-242-1849. To learn more about collection law, visit the FDCPA.