Filing for bankruptcy has many benefits. The burden of unmanageable debt is gone, and months or even years of creditor harassment should be gone. After filing, you are likely to feel a sense of relief, knowing you are ready to start over financially with peace of mind.
When you start receiving calls or letters from creditors after your bankruptcy, it is natural for those old feelings of stress and anxiety to return, along with a sense of alarm or confusion, since you were under the impression your debts were discharged. So why are your creditors continuing to contact you?
Creditors may not know about your bankruptcy
There are several reasons why creditors still be contacting you. Although the automatic stays went into effect when your bankruptcy was filed, which should stop creditor contact, it is not unusual for you to continue to hear from creditors during the pendency of your bankruptcy. Some creditors could simply not have received the message that you had filed for bankruptcy and still believe your debt to be active.
Once the bankruptcy is complete and your automatic stay is converted into a permanent discharge injunction, by law creditors must stop trying to collect the debt. However, this does not mean they cannot contact you. Even though they can no longer collect the old debt, they may contact you for other reasons. They may even still try to collect the old debt, thinking you may incorrectly believe it is a new debt.
For example, they may try to get you to take out a new loan or open a new credit account with them. You may even continue to receive threats to place liens on your property or take legal action on the old debt. Discharged debts are supposed to be removed from your credit report after bankruptcy, but some creditors may take a long time to do this or even refuse to remove it.
Life after bankruptcy should be hopeful and full of possibilities but continued unwarranted creditor harassment can ruin what is meant to be an optimistic time. Direct communication from an experienced professional to your old creditors can help.