May
There is something you need to clearly understand about your debts before you file for bankruptcy. Some people get into such a state of shock that they’re in this situation that they may not even hear the words their attorneys explain to them about the bankruptcy process. They just go through with it and as long as they get a bankruptcy discharge they make themselves feel better by thinking that it’s all over. Some of your debts can be discharged and others can not, and if you mistake the two types, that’s when collections agencies can come after you.
You need to know what debts are discharged under bankruptcy, this is particularly relative to bankruptcy chapter 7 filings, where you can basically get all your “unsecured” debts discharged at no further obligations to you, but it’s only these unsecured debts that get discharged. Then of course there are the “secured” debts, which you still need to worry about. So to be perfectly clear about this “Not all debts are discharged when you file for bankruptcy“.
If you had already defaulted on your debts prior to filing bankruptcy, it’s probable that your creditors sold your debts to collections agencies prior to you filing bankruptcy, who can then come after you for that debt plus additional fees. When you get a bankruptcy discharged, you need to make sure that you keep your discharge papers handy at all times. Make several copies of them and keep them ready to mail to whoever needs to see them for you to prove that you did in fact file bankruptcy and were your unsecured debts discharged.
When a collections agency contacts you about debt that was discharged in bankruptcy, you don’t necessarily want to ignore the call or letter, you need to let them know that the debt they’re seeking repayment for was discharged in bankruptcy and you need to provide them with the correct paperwork of your bankruptcy discharge to prove this. If they continue to pursue this even after you provide the documentation, and they will sometimes push it, then you must contact the bankruptcy attorney that represented you and make them aware of it, they will know just what to do about it. If you filed bankruptcy alone, then try first contacting the courthouse where you filed your petition and bring it to their attention.
Collecting discharged debts goes against the order by a federal court that you have no further obligation to this debt, but collections agencies sometimes push this in hopes that you won’t know any better or that you will simply give in and just start paying again. Once you threaten to take legal action against them they will back off since it can cost them money to fight a case they can not win.
On the flip side of that coin, if you ignore secured debts after your bankruptcy discharge, you are not only going to get chased by collections agencies, but you are causing further damage to your credit since collections accounts normally get recorded in your credit history.
Some of the debts that are considered secured debts are student loans, mortgage leans on your home, car payments, federal and state taxes and basically anything else that has some kind of collateral to it. However certain items that you buy with consumer accounts like those you get from a furniture store or department store where you might make large purchases, need to be clearly defined in your bankruptcy file as either exempt items or assets that can be liquidated. If they were marked as exempt, then they can not be taken back, though again they will try.
You must continue to pay for your secured debt or surrender the collateral, such as the car or home attached to the lean. When it comes to student loans and taxes, there are no actual collaterals for these debts, they are just obligations that you must take care of. The federal government in particular, does not need an external collections agency to collect taxes you may owe. The IRS will start by contacting you via mail about your debt, you need to act immediately and establish a repayment schedule, otherwise they can levy any assets you may have and/or you may even be sent to jail for not paying your taxes.
Do not ignore the warnings, if it’s unsecured debt, provide the appropriate proof of discharge and consult a your bankruptcy attorney. If it’s secured debt then continue paying it or surrender the asset.
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