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Scura, Wigfield, Heyer, Stevens & Cammarota Blog

Can Debt Collectors Collect Debt After You File for Bankruptcy?

[fa icon="clock-o"] January 22, 2016 [fa icon="user"] Scura Law Firm [fa icon="folder-open'] Consumer Bankruptcy, Debt Management

Debt_collector_and_worried_womanDealing with debt problems is never easy for residents in New Jersey, and making the decision to file for bankruptcy is certainly not any easier. However, taking this major step to deal with financial issues could be very beneficial. Nonetheless, there are still several obstacles debtors will face, and they will likely have numerous questions regarding discharged debts and debt collection.

Debt Collection After Filing Bankruptcy

Can debt collectors continue to collect debt after you file for bankruptcy? Generally, once a debtor has filed for bankruptcy, debt collectors are not able to collect on the debts that are included in the bankruptcy filing. Additionally, debt collectors are not permitted to continue at collection efforts while the court is hearing the bankruptcy case.

What if a Debt Collector Contacts You After Bankruptcy?

What should debtors do if a debt collector contacts them? It is important to tell them that you have filed for bankruptcy. You should also ensure that the debt and creditor are on the list filed with the court. If you are represented by an attorney, you should advice the debt collector of this. At this point, the debt collector is required to communicate with your attorney moving forward.

Some Lenders Have the Right to Repossess Collateral

Debtors should note that some lenders do have the right to repossess collateral, and might still have that right even after you filed for bankruptcy. For example, many automobile loan lenders have the right to repossess the car for unpaid debt. In these matters, it is important to understand what property could be repossessed and what debt is discharged during bankruptcy.

Dealing with debt collectors is a common challenge in the bankruptcy process. Therefore, it is important to understand how to address any issues that might occur. This will not only help resolve any problems in the process but also protects the rights of the debtor as they file for bankrtuptcy.

Contact our bankruptcy attorneys today for more information and guidance in your specific financial situation.

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