While some people from Texas get into debt when faced with troublesome financial situations, for others, financial mistakes may be what gets them into financial hot water. Many of these conditions can lead to a stressful financial situation, and very few people can repay their debts immediately. Many who face default have to face additional fees and other charges, which can cause their debt amounts to rise drastically.
Though the person may try hard to pay off these debts, there are situations when the person may not be able to pay them and their creditors or the debt collection agency may take steps to collect these debts. But after analyzing the various methods to eliminate their debts, an individual may consider filing for bankruptcy.
When someone files for bankruptcy, a debt collector is forbidden from contacting the person. The debt collector also cannot undertake any debt collection activities while the bankruptcy case continues in the court.
Should a debt collector contact a person after he or she has file bankruptcy, the person should inform the debt collection agency about their bankruptcy filing. If the person has used a lawyer for filing for bankruptcy, they can give this information to the debt collector, so that the debt collector can contact the attorney instead of the debtor. In addition to this, the person should also confirm that the debt the collector is inquiring about is included in the list of creditors and debts that is filed with the court.
If someone is unsure about any of the process involved in bankruptcy, that person can speak to their attorney. This may help them understand the various processes and their rights during a bankruptcy proceeding.
Source: ConsumerFinance.gov, "Can a debt collector try to collect on a debt that was discharged in bankruptcy?," April 8, 2014