Post-Bankruptcy Credit Collections

Estimated reading time: 3 min.

Everyone experiences a credit collection call or two at some point in their lives. While some may receive more than others, none of us are exempt from the frequent interruptions to our daily lives when creditors call looking for the late payment owed to them. Sometimes it may come as a surprise, other times every ringtone makes you cringe and screen your calls because you know who is on the other end…again.

So, Let’s Say You’ve Successfully Filed and Completed Bankruptcy

The debts that cause credit collectors to call you are now discharged, right? Once you’ve filed for bankruptcy, it is true that these calls should immediately stop. In reality, this may not be the case, and you may find yourself screening the same calls you did before, perhaps with a little more ease but with just as much annoyance. Luckily, you may be able to work with the same lawyer you trusted to help you complete your bankruptcy claim to discuss this and other issues after bankruptcy is completed.

How Do I Stop Collection Calls After Bankruptcy?

Bankruptcy Puts in Place an Automatic Stay as Soon as You File

What is this? The purpose of an automatic stay is to protect you from phone calls, emails, and letters that are attempting to collect debts from you that you may find annoying at best and harassing at worst.

Ongoing attempts to contact you regarding your debt by the creditor is illegal from this point forward and should cease unless the creditor has expressed permission of the court. With best intentions assumed, creditors use software systems that may take a little time to catch up to the automatic stay order. However, there may be other debt collectors that simply choose to ignore the law and continue to contact you for what is owed no matter what.

• Read more about How to find and fix common errors on your credit report

If you continue receiving calls after a reasonable amount of time has passed, you might assume that these creditors are breaking the law, especially if you’ve taken the time to inform them that you have filed and/or completed bankruptcy proceedings. In this case, it is beneficial to be knowledgeable about what your rights are and do not assume you have to live with harassing phone calls, emails, and letters. After all, these are stress-provoking even if you’re confident you no longer owe them money. In this case, get in touch with your bankruptcy attorney so they can assist in ensuring the creditors’ systems are up to date or to bring the matter into a court of law.

What Steps You Could Take

1. Provide an explanation to your creditors
2. Take detailed notes of each credit collecting interaction
3. Contact your bankruptcy lawyer
4. Take creditors to court.

While this may seem extreme, moving forward after bankruptcy while you continue to receive debt collection calls is challenging. If they won’t stop after initial simple steps are taken, suing them for harassment and emotional suffering may be necessary to stop the abuse.

Legal and Financial Implications of Post-Bankruptcy Credit Collections

Navigating the aftermath of bankruptcy can often introduce unexpected challenges, one of which is dealing with post-bankruptcy credit collections. Legally, once bankruptcy has been declared and discharged, most debts should be considered resolved. However, certain debts like student loans, certain taxes, and child support may not be discharged.

Financially, the consequences are equally significant. The debtor’s credit report will reflect the bankruptcy for 7 to 10 years, which can influence future loan terms, employment opportunities, and housing options. It’s crucial for individuals to verify that all discharged debts are correctly updated in their credit reports to prevent illegal collection attempts.

Steps to Address Inaccuracies in Credit Reports Post-Bankruptcy

If inaccuracies appear on your credit report post-bankruptcy, taking swift action is essential.

1. First, obtain a copy of your credit report from all three major credit reporting agencies.
2. Scrutinize each entry, especially looking for debts that were discharged but are still listed as active.
3. File a dispute with the credit bureaus providing copies of your discharge documentation.
4. Follow up diligently until corrections are made.

Consulting with a bankruptcy attorney can provide guidance and, if necessary, legal representation to ensure your credit report accurately reflects your bankruptcy discharge.