Coping with Creditors and Collection Agencies After Filing Bankruptcy

Choosing to file for bankruptcy is an enormous decision. Obviously, bankruptcy can assist you to have a new lease on your financial future, but it could also wreck havoc on your credit report. Hence, it can make it very challenging to obtain credit lines after your bankruptcy filing.

But, if you feel bogged down in working with creditors it may be the best choice. Chances are if you are filing for bankruptcy you have been receiving letters and phone calls from creditors reminding you that you owe their clients money.

When you finally seek bankruptcy relief and have given over the names and addresses of your loan providers to the bankruptcy attorney, you don’t need any kind of long drawn-out facts for the credit card companies or collection agency representatives. The bankruptcy lawyer can take care of everything after you file.

In many instances, even before the documents are filed and your credit card companies have gotten notification, you can simply tell the creditor on the phone about your bankruptcy proceedings.

You can offer them the name and phone number of your legal professional, but you do not need to answer other questions they could have. Actually, if you've retained an individual bankruptcy attorney, it is their job to deal with these items for you.

Understand that many collectors have obtained unpaid debts from your lenders and may tell you a number of stories in order to collect something from you. Because they now own your debt, if they cannot collect, they lose money.

It is likely they have purchased the debt for about half of what you borrowed from and may well make you a deal to settle the debt for less than you earlier owed and if they are successful, you'll have that debt stripped away from personal bankruptcy, but that is ordinarily not to your advantage.

Keep in mind you are declaring bankruptcy because you can’t settle the debts and unsecured debts will likely be written off along the way. Your best bet is to simply and pleasantly tell them about the individual bankruptcy and offer the name and number of your legal professional before swiftly ending the discussion.

Its also wise to keep tabs on your contacts with your debt collectors just in case they continue to call you right after being informed of your imminent personal bankruptcy. After they have this info, they should stop calling.

However, if they continue, it is usually considered harassment, which can be against the law. Consequently, you'll want to chat with your legal professional if your creditors continue to call you even when they have your lawyer's information for contact purposes.

Bankruptcy Protection for American Servicemen and Women

It seems only fair that those who have defended our nation should have a little extra protection when it comes to debt relief. This is exactly what the Servicemembers' Civil Relief Act offers. The Act covers all active duty military service persons. So what's the reasoning? Part of the reason is that it was determined that American military personnel earn less than "normal" income they would earn if they were to be working civilian jobs.

One of the provisions of the Act is protection for service persons to have the ability to lawfully terminate leases from both residential and commercial spaces. In addition to this protection, servicemen and women are protected against most forms of foreclosure. This includes those service people who have been inactive for three months or less, and protects them against credit unions, lenders, banks, or individuals they may owe monies to. This measure is only available to those service people who had a mortgage before they became active service persons.

There are several other protections made available to military personnel. Your personal bankruptcy attorney can help you decide which of these is appropriate for you once they have an understanding of the whole scope of your bankruptcy filing.

But if you are an active service person of the US military in any capacity, let your bankruptcy attorney know so that you can get the best possible protection available to you.

Bill Collector Harassment | Tom McAvity Suggestions

When faced with bill collector harassment, you do have options. There are some collections agencies who will inaccurately tell you that you are not eligible to file for bankruptcy. Whether or not you are entitles to bankruptcy is not up to collectors -- it is a matter between you and your bankruptcy attorney. You may or may not be eligible based on a number of unique circumstances. That said, Chapter 7 and Chapter 13 are great tools for debt relief for a number of people.

Tom McAvity and Northwest Debt Relief Law Firm can tell you what options may best suit your needs based on the various aspects of your financial circumstances. There are many options in debt relief outside of bankruptcy, and you can discuss these options with a debt relief counselor or attorney who knows the ins and outs of the laws.

You do have fair options available to you -- it's your right as a consumer to seek aid in the form of bankruptcy or other forms of debt relief. Tom McAvity can help you discover what your options are. While many argue that bankruptcy is not a viable option, it is an extremely effective way for consumers just like you to create a fresh start and get credit card debt and mortgages under control.

If you're considering your financial options and would like to hear more about bankruptcy and debt relief, call Tom McAvity at NWDRLF today by dialing 1-866-601-1918.