- Legally, there is no need for you to warn creditors before you file bankruptcy, according to Lawyers.com. Actually, warning creditors far in advance of a bankruptcy is a poor tactical move, because the creditor might take legal action, such as obtaining a judgment to levy your bank account. In the case of a collection account, even if the debt collector cannot sue you, it may advise the original creditor to do so.
- The only time you might want to notify a collection agency or creditor of an impending bankruptcy is out of courtesy. For instance, you might warn a relative or creditor with which you have a close relationship, such as a doctor, of an impending bankruptcy to preserve the relationship and his opinion of your character.
- At some point, you may need to notify creditors of your bankruptcy petition. When you file bankruptcy, you should list all of your creditors, because then they must observe your right to automatic stay, which stops any listed creditor from taking further collection action. The bankruptcy courts notify your creditors of an automatic stay, but you might want to notify creditors yourself as soon as you put in your bankruptcy application to stop any potential action in progress, such as reporting to the credit bureaus or trying to sue you.
- Once a creditor learns of your bankruptcy, it must stop calling you. Your creditor may have a bill already processing by the time you file bankruptcy, so you might accidentally receive some communication. However, if the collection agency keeps calling or sending bills, this is a violation of automatic stay protection. If you hire a bankruptcy attorney, you should have creditors contact him with any questions. Keep photocopies of any communication between you and your creditors once you official file a bankruptcy petition, just in case you have to file harassment charges.
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