| Bankruptcy Law - Questions & Answers
Will the bankruptcy stop
bill collectors from calling?
Yes. A provision of the Bankrupcy
Code called the automatic stay prevents bill collectors
from taking any action to collect debts. Once
a creditor or bill collector becomes aware of
a filing for bankruptcy protection, it must immediately
stop all collection efforts.
After you file the bankruptcy
petition, the court mails a notice to all the
creditors listed in your bankruptcy schedules.
This usually takes a couple of weeks. Creditors
will also stop calling when you inform them that
you filed a bankruptcy petition and supply them
with the "docket number" for the case.
In some cases, you or your attorney should contact
the creditor immediately after filing the bankruptcy
petition, especially if a lawsuit is pending or
if repossession of cars or personal property is
imminent.
A creditor may be liable for
court sanctions if it continues to use collection
tactics once informed of the bankruptcy.
Once the bankruptcy is filed,
your attorney will assume all responsiblity for
communicating with your creditors.
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