Do Creditors Still Contact You After You File for Bankruptcy?

Yes, creditors may still contact you after you file for bankruptcy. This can happen due to a failure to receive notice, improper listing in the schedules, or a simple human error. Regardless, as soon as you file for bankruptcy, you are protected by the automatic stay, a legal injunction that immediately halts all collection activities, including creditor contact. However, creditors may communicate with your bankruptcy attorney and participate in the bankruptcy proceedings.

The Automatic Stay and Bankruptcy Protection

The automatic stay is an essential component of the bankruptcy process. Once a bankruptcy is filed, all creditors are legally prohibited from contacting you directly to collect discharged debts. This stay remains in effect throughout the bankruptcy proceedings, unless there are specific exceptions, such as for secured debts that have been reaffirmed or for which a lender has sought permission to redeem.

Legal Requirements Post-Notification

After the bankruptcy is filed and notice to all creditors has been sent out, creditors are legally required to deal directly with the court-appointed bankruptcy administrator. It is important to note that there is a slight time lag to account for the receipt and review of these notices by creditors.

The Reaffirmation Process

In your bankruptcy plan, you can specify which secured debts you wish to reaffirm, allowing you to continue making payments and allowing creditors to contact you. For secured loans, such as car loans or mortgages, a lender has the right to petition for relief of stay to allow them to proceed with repossession if the loan is not reaffirmed. If you reaffirm a secured debt, the lender will send a reaffirmation agreement to your bankruptcy attorney.

What to Do if a Creditor Contacts You After Bankruptcy Filing

Even with the automatic stay, some creditors may still attempt to contact you. If this happens, here's what you should do:

Politely inform the creditor that you have filed for bankruptcy and that they are listed as one of the creditors. Tell them that you are not to be contacted further. Document all communications and the date, time, and nature of each contact. Notify your bankruptcy attorney of any creditor contacts.

Legal Consequences for Creditors

If a creditor violates the automatic stay by contacting you, it is a violation of the Fair Debt Collection Practices Act (FDCPA). This can result in severe penalties. The creditor may be required to pay a fine of up to $1,000 to the debtor and cover the attorney fees incurred by your legal representative.

Example Incident: North Carolina, 1992

In the state of Massachusetts in 1992, where I filed for bankruptcy, it was illegal for creditors to call once I provided them with my discharge information. This was a significant protection for debtors at the time.

For more information on bankruptcy and creditor protections, consult your bankruptcy attorney or the official guidelines provided by the United States Bankruptcy Court.