Do I Need To Continue Making Payments Of My Credit Cards After I File For Bankruptcy? Bankruptcy, The Automatic Stay And Creditor Harassment

A question that I frequently hear from clients preparing to file for bankruptcy is, “When should we stop making payments on our credit cards?” The moment you file your bankruptcy case every debtor receives a bankruptcy Court Order called an “automatic stay”. This stay is very important to the bankruptcy filer as it protects you from all types of harassment from creditors. So the latest anyone would want to pay their credit card payment(s) would be up to the date your bankruptcy case is filed with the court. Thereafter you are protected by the stay. Creditors are prohibited by law from calling you or contacting you directly in any way. Once you file for bankruptcy you can cease making payments on your unsecured/credit card debts without fear of being called and harassed by the credit card or loan companies. After your bankruptcy is filed you will generally not hear anything again from these types of creditors.

The bankruptcy stay is also very important for people who have stopped paying the debts prior to filing for bankruptcy. Anyone who has had problems making payments on their credit cards will tell you how ruthless credit card companies can be. If you stop making payments for any reason you will be bombarded with calls from these creditors. These creditors will usually call you every hour on the hour from early in the morning to late in the evening, including weekends. If you have multiple credit cards or unsecured loans you have not paid these creditors will call you all day long. Most people in this situation stop answering their telephones altogether as they are called all day long by one creditor or the others. Another tactic creditors use is to call your family members or even neighbors. Many times they will attempt to contact you at your place of business and try to discuss payment terms with you while you are working. These tactics, however underhanded, are very embarrassing but tend to be effective in getting you to pay something just to make them stop. Remember you do not need to be a victim to your debt.

Anyone considering filing for bankruptcy should know the frequent telephone calls and other creditor harassment will stop immediately upon your filing for bankruptcy. I have had many of my clients tell me after they have filed for bankruptcy they are able to use their phone again. Once you file for bankruptcy the stay will be in place until the bankruptcy court orders a discharge of your debts. Once the debts are discharged by the bankruptcy court they are gone and erased forever. Your creditors are prohibited by bankruptcy law from EVER contacting you about a discharged debt.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.