When Do I Stop Paying My Creditors?

Generally, you will stop paying all other creditors, such as charge cards, as soon as you make the decision to file a bankruptcy petition.

Read Chapter 23 of Attorney Peter Francis Geraci’s, “Complete Book on Bankruptcy” below. For more, visit https://www.bankruptcybookbypeterfrancisgeraci.com/

Generally, you will stop paying all other creditors, such as charge cards, as soon as you make the decision to file a bankruptcy petition. Whether you are doing a Chapter 7 or a Chapter 13, there are some bills you will always want to pay. These are personal expenses, such as rent, food, school tuition and current utilities.

In a Chapter 7 bankruptcy, generally the only bills other than regular living expenses that you will pay are for mortgages or cars that you want to keep, or for non-dischargeable debts such as government insured student loans or loans or grants from non-profit schools, first due less than 7 years ago. You may also want to pay collateralized loans, such as furniture and electronics purchases.

In a Chapter 13 debt repayment plan, you are proposing to pay your creditors by making one payment to the Chapter 13 trustee, who then divides it up between the creditors. Therefore, you pay no one individually, or “outside the plan,” because your Chapter 13 payment pays them. The only creditor that is generally paid “outside” the Chapter 13 Plan is a mortgage on real estate.

If I am representing you, I will advise you on which creditors to continue paying, and which not to. Generally, you never continue paying charge cards and similar debts, but this is a complicated area and is best left to your attorney to advise you.

Problem: Lou and Wendy can pay their car payment this month, but due to higher rent, can’t pay their credit cards, or the IRS taxes due for Lou’s side jobs from last year.

The Peter Francis Geraci Chapter 7 or 13 Solution: Perhaps they can file a Chapter 13, which may pay all their bills for the same amount as their car payment; the car will be paid for by the Chapter 13 payment, first, before other creditors. They can use the car payment money for their first Chapter 13 payment. Or, they may want to continue making their car payment, stop paying all the credit cards, and just pay down their IRS debt, doing a Chapter 7.

Dial 1-800-CALL-PFG for a free phone mini-consultation, or make an appointment online 24/7 at www.infotapes.com.  Bankruptcy laws are in place to help you.  Who knows bankruptcy like Geraci Law?  Geraci Law has 30,000 5-star reviews 5starsince November 2016!

Read ALL ABOUT DEBT RELIEF at www.bankruptcybookbypeterfrancisgeraci.com.

When Will Creditors Stop Bothering Me?

If you are having trouble with bill payments, you should get a consultation with an experienced bankruptcy attorney before you make more payments to creditors.

Check out Chapter 20 in Attorney Peter Francis Geraci’s “Complete Book on Bankruptcy.” This chapter is below, read more @ https://www.bankruptcybookbypeterfrancisgeraci.com/

CHAPTER #20 When Will Creditors Stop Bothering Me?

The minute the bankruptcy case is filed. In the meantime, don’t talk to them, leave them on the answering machine. If they call you at work, get their info, give them your home number, and say “My employer does not allow calls at work, please call me at home.” These are magic words under the Fair Debt Collection Practices Act that require them to stop calling you at work. You can tell them that!

After we have prepared a petition listing your debts and assets, and prepared answers to required questions about your personal actions in relation to money, the bankruptcy petition is filed with the Clerk of the Bankruptcy Court. Of course, your attorney fee must be paid in full, unless you have made other arrangements. After you have paid your attorney, you pay the filing fee, or court cost. It is about $300.00 (When I started practicing bankruptcy law, in 1974, the court cost was only $30.00.) This must be paid in the form of a money order or cashier check payable to the Clerk of U.S. Bankruptcy Court, since the Clerk does not take personal checks.

After the Clerk has stamped a bankruptcy case number, or docket number, on the petition, notice can be sent out to all creditors that you are under the jurisdiction of the Bankruptcy Court. Then, Federal law requires that all collection action stop.

After you have made up your mind what to do, I generally advise you to stop paying all creditors except the ones which will survive a bankruptcy. If you are having trouble with bill payments, you should get a consultation with an experienced bankruptcy attorney before you make more payments to creditors.

You may be wasting your money right now by making minimum payments on bills that don’t go down after you make the payment, or you may be paying money to creditors that you will get rid of, instead of creditors that you must pay.

It is important to understand that thinking about filing bankruptcy, or even talking about it, is not the same as giving money to an attorney and actually having a docket number assigned by the Clerk of the U.S. Bankruptcy Court. Even giving money to an attorney is not enough. The case actually has to be filed with the Clerk. It is then that the provisions of the Bankruptcy Code which protect you from creditor harassment, bill collectors, wage assignments and lawsuits come into effect.

Those provisions are briefly known as the “automatic stay” provisions. This protection is known as the automatic stay, because the Bankruptcy Code provides that all creditor action is automatically stopped, or stayed, when a petition is filed with the Clerk of the U.S. Bankruptcy Court. This “automatic stay” is truly automatic, and even if a creditor does not know a bankruptcy case has been filed, you are protected from their actions.

For instance, if money is taken out of our paycheck by a creditor after the date a bankruptcy petition has been filed, it must be put back as soon as you notify your payroll department that you were under the protection of the automatic stay provisions of the Bankruptcy Code at the time the money was deducted.

I routinely provide my clients with notices entitled “Automatic Stay”, which state the language of the Code. I mail them to the client when the case is filed, so that the client can notify payroll, if necessary, or tell the docket number to any bill collector who calls. Sometimes clients get these in the mail, and even though we have discussed it thoroughly, they call up and say, “What are all these papers? Do you mean I have to notify my creditors? What am I paying you for?

I then explain again that this is for your benefit, so that you quickly have something in your hand to give to anyone who wants proof that you have filed a bankruptcy petition. Creditors and payroll departments will immediately stop any action if they know definitely that a bankruptcy has been filed.

Problem: Keith has a wage assignment from a finance company, and all his creditor cards are behind and bill collectors are calling him constantly.

The Peter Francis Geraci Chapter 7 or 13 Solution: The filing of any bankruptcy petition stops all creditor action. When Keith’s bankruptcy case is filed, the wage assignment has to stop, and no one can even call him on the telephone.

Dial 1-800-CALL-PFG for a free phone mini-consultation, or make an appointment online 24/7 at www.infotapes.com.  Bankruptcy laws are in place to help you.  Who knows bankruptcy like Geraci Law?  Geraci Law has 30,000 5-star reviews 5starsince November 2016!

Read ALL ABOUT DEBT RELIEF at www.bankruptcybookbypeterfrancisgeraci.com

Being Sued? Call Geraci Law Today!

What is a lawsuit?   It’s a bill collector asking a court for a JUDGMENT!  Why do creditors hire lawyers to get a JUDGMENT?  lawsuitBecause then they can use the Court to COLLECT!!  First they hire the sheriff to serve you with the complaint.  If you don’t have a defense, they can then get their JUDGMENT!

How do creditors COLLECT?  First, they may record the judgment with the County you live in or have property in.  Then it becomes a “lien” or “right to collect when sold”.  That means they can sell your real estate, or personal property!!!  Serious!

Next, they can ask your bank or employer to turn over your money or paycheck!  Whooops!

How can you stop a lawsuit or judgment?  Pay them!  If you can’t pay them, get a free phone mini-consultation with Geraci Law.  Chapter 7 can eliminate debt. Chapter 13 can consolidate it into an affordable payment plan. Geraci Law will review your BEST option to stop the creditor action. We know you might be nervous or embarrassed. Don’t be. Geraci Law is here to help. We do not judge – we STOP judgments from creditors.

Hwoman happyere’s an example showing how Geraci Law can help…“I came in to this office worried and scared because of the amount of debt I was in and the possibility of law suits consuming my life. When I arrived I was greeted and immediately felt welcomed. I was a bit unprepared and nervous but Geraci Law made it a simple and smooth process! They were very understanding and did not judge or condemn me for what was going on. Geraci Law simply offered words of encouragement and explained my options to help! I’m so glad I came!!

Dial 1-800-CALL-PFG for a free phone mini-consultation, or make an appointment online 24/7 at www.infotapes.com.  Bankruptcy laws are in place to help you.  Who knows bankruptcy like Geraci Law?  Geraci Law has 20,000 5-star reviews 5starsince November 2016!

Read ALL ABOUT DEBT RELIEF at www.bankruptcybookbypeterfrancisgeraci.com.

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