Collection Activity in Bankruptcy in Minneapolis, Minnesota
When you file bankruptcy, you are placed in a metaphorical bubble of protection from your creditors. This bubble is called the automatic stay. The automatic stay protects you from collection activity during the bankruptcy, until you receive your bankruptcy discharge, which is the court order saying you do not have personal liability on your debt anymore. What the automatic stay means for you, is bankruptcy can stop creditor collection harassment, collection lawsuits from moving forward, collection calls, and statements from coming.
Now, unless your attorney sends notice to certain creditors on the date your case is filed, it typically takes creditors about three to four weeks to receive your notice of filing and to process the notice to stop collections. During the first three to four weeks you may still receive statements and calls, but can generally just ignore them or if you prefer, tell the creditor you filed bankruptcy and provide your attorney’s information. When the creditor receives notice your case has been filed, that is the official notice they can no longer try to collect on the debt.
What happens if a creditor continues collection efforts after your case is filed and multiple notices of filing? In that circumstance, let your attorney know. It may be time for you to bring an action against the creditor for violating your rights under bankruptcy law.
When you file, the automatic stay stops most collection efforts, but there are some things that will continue, even after bankruptcy. For example, child support and alimony payments still need to be made after bankruptcy filing and can still be collected on. Criminal fines and penalties still can collect after bankruptcy filing as well.
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If you have questions about bankruptcy and would like to do a free consultation to go over your options, visit www.lifebacklaw.com to speak with an attorney. You will be glad you did!
