Nathan DeLadurantey: Can Debt Collectors Contact You After Filing For Bankruptcy?
If you’re struggling with debt, filing for bankruptcy can be a great way to get back on track in Wisconsin. A bankruptcy or consumer proposal can stop creditors from contacting you, and it also limits the amount of money that you owe.
However, Nathan DeLadurantey stresses that this doesn’t mean that debt collectors won’t try to contact you after your filing. In fact, they are legally allowed to contact certain types of claimants (e.g., insurance companies) even after filing for bankruptcy or consumer proposal.
What Is Bankruptcy, Anyway?
Bankruptcy refers to the legal process that helps debtors who cannot pay their debts. When you file for bankruptcy, you are then protected from creditors and the court will decide what to do with your debts. Bankruptcy can be filed either by an individual or a corporation (business).
What Is A Consumer Proposal?
A consumer proposal is a legal process that allows you to pay off your debts over time. In this case, you must make a lump sum payment to your creditors to repay them. You will also have to make payments for 3-5 years until the debt has been completely paid off.
Can Debt Collectors Call After The Filing Of A Consumer Proposal?
After you have filed for bankruptcy or a consumer proposal, debt collectors cannot call you. They can only contact you if you authorize them to do so.
If a debt collector calls after the filing of your bankruptcy or consumer proposal, let them know that they cannot contact you until authorized by the trustee in bankruptcy. Debt collectors are required to cease all collection activities while waiting for authorization from either party mentioned above.
How Long Does Your Bankruptcy Last On Your Credit Report?
Nathan DeLadurantey All consumer proposals and personal insolvency agreements must include a discharge of all debts under the proposal or agreement. This means that after these types of arrangements are made, creditors cannot sue you or take any further action to collect their money from you until 10 years have passed since your bankruptcy was discharged.