If you have already retained a bankruptcy attorney, you should discuss how his/her particular office handles contact with creditors prior to the filing of a bankruptcy. There may be specific reasons for disclosing or not disclosing this information depending on the type of debt and the time-frame for filing your bankruptcy case.
For most run-of-the mill creditors – credit cards, medical bills, personal loans – that have not brought any court action against you, we recommend providing them with your bankruptcy attorney’s name and contact information when you are called. You should not have to hunt these creditors down. They will call you soon enough.
You do not, however, want creditors to keep contacting you by phone or mail. So when you are contacted, state “I have hired attorney (your attorney) from (law firm) to represent me against your debt in bankruptcy. If you have any questions, you can reach my bankruptcy attorney at (phone number).” Then hang up. That is all you have to do. Under the Fair Debt Collection Practices Act (FDCPA) the creditor must stop contacting you once they know you have an attorney. (Please note that it does not have to be a bankruptcy attorney to get them to stop calling.)
Most general unsecured creditors will stop all collection activities once they have been notified that you have retained a bankruptcy attorney and verified representation with the law firm. If they continue to contact you, you should take down the name of the agent, name of the collection company, name of the original creditor, and the phone number. Provide this information to your attorney to follow up with the creditor. You should not be in negotiations, disputes, or lengthy discussions with any of your creditors. That is why you have hired an attorney.
If you are currently being sued, you should respond to the lawsuit immediately. You should make sure to include in your response the information regarding your bankruptcy – attorney name, firm, contact phone, and timeline for filing. The most important part of this is putting the plaintiff/creditor and the judge on notice that you are moving forward with a bankruptcy filing.
Many times after being notified of the intent to file bankruptcy, a judge will allow you 30-45 days to get your bankruptcy case filed to avoid wasted resources. Keep in mind that the judge and plaintiff/creditor do not want to waste their own time. Neither party would want to spend time litigating issues involved with a lawsuit that is going to be discharged once the bankruptcy is filed a month later.
Prior to filing your bankruptcy you may also want to notify your landlord of your intent to file. If you are keeping the lease and intend to continue making payments, tell the landlord this so they are not concerned when they receive the bankruptcy notice in the mail. Larger companies are generally familiar with bankruptcy filings and the impact on the lease, but private landlords or very small companies may be afraid you are trying to stop paying. Make sure your bankruptcy attorney is available to speak with your landlord if needed because he/she will be better able to explain your intent and responsibilities moving forward.
You should also discuss these issues with your bankruptcy attorney so he can give you a specific plan moving forward. He/she should have insight into the specifics of your bankruptcy filing so it goes as smoothly as possible.
