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So you’ve actually just stated bankruptcy. The entire procedure has actually been unpleasant, to state the least, however it’s out there, it’s over.
Unfortunately, it looks like there are some financial institutions who’re still on your case, chasing you, regardless of your bankruptcy condition. Because scenario, what should you be doing?
The first term connected to bankruptcy is an “automatic stay.” In legal terms, “The declaring of a bankruptcy case, under any chapter of the Bankruptcy Code, causes an injunction against the continuance of any activity by any lender against the debtor or the debtor’s residential property.”
In other words, it suggests that for the debts that were released after your bankruptcy (remember, there are financial obligations that cannot be discharged), lenders can not remain to call you about them. If lenders are coming after you declared bankruptcy, they’re technically breaking federal laws by doing this. An automatic stay means that any wage garnishments, collection agency calls and letters associated with qualified debt must cease after you file documentation for bankruptcy.
Sometimes, creditors can be sneaky – they are, after all, chasing you for cash that you owe – and can declare that they never received the bankruptcy filing. And even worse, they may fail to update a lender report stating that you now owe “$0” due to debt being discharged upon bankruptcy. If this amount sticks to you and the report doesn’t reflect that the financial obligation was discharged due to bankruptcy, it will hurt your credit score much more.
Whatever the scenario, you’re accountable for making sure that you’re up-to-date with your reports and you need to also make sure the financial institutions and collection agencies have actually been warned that you’ve actually declared bankruptcy. You’ll need to send out all required paperwork and paperwork to the relevant celebrations, and ensure that any court-related documents are in fact sent out in a prompt manner to your financial institutions.
After you have sent out in the necessary files and reports, see to it to watch out on your lender report to see that all costs are upgraded appropriately, and to dispute it to either the financial institution or collection agency as quickly as possible if there’s an error.
In the worst case scenario, there are still options. If you hired a bankruptcy attorney to help you submit (and you must have!), she or he should understand if financial institutions remain to call you relating to financial obligation that’s been released. Lawbreaker costs can be brought against the institution, and you could be eligible to bring a claim against the lender in that case. Ideally it’ll not take such extreme measures, but do know that options are readily available.