Once your petition has been filed all credit and debt collection activity must stop and you may begin to notify your creditors and any parties taking legal action against you regarding your finances or debts that you have filed for bankruptcy protection. At this point all attempts to collect on your debts must cease as it is against the law. Creditors are keenly aware of the rules and regulations involved with bankruptcy so that is why there should be zero tolerance for any attempts to collect on your debts even after the filing process is complete and you receive your discharge.
Once your petition to file and required documents have been submitted to the proper location along with your filing fee a Bankruptcy Trustee will review your case and you will be notified of a Section 341 Meeting of Creditors that you must attend with your MN Bankruptcy Lawyer.
The meeting of creditors allows individuals and entities listed on your petition to raise any questions or concerns they may have or challenge any of the information on your petition. Don’t’ be alarmed, creditors seldom attend these meetings as they are not required to do so. However, if there is reason to believe the information you have submitted with your filing is false, fraudulent or in any way inaccurate they may choose to attend in order to address these matters. This is why it is very important you are honest and transparent with the information you are submitting.
When reviewing your petition the trustee who has been assigned to your case will determine how to divide up your non-exempt assets. It is the trustee’s responsibility to make the determination whether or not it is justifiable to liquidate the property or just allow it to return to the filer. If any property is sold the revenue generated through the sale of these items will be divided among the creditors listed on your petition and you can begin the journey back to financial stability free of many of the hardships which had been hindering your growth and wellbeing.
Your creditors are aware you are experiencing financial difficulties and that this limits your ability to dispute aggressive collection practices. When we are struggling some predatory creditors will engage in aggressive collection practices which often fall into the “gray area” regarding bankruptcy guidelines and legislation. This is why it is important to understand the rules and regulations that give you protection throughout the process in order to prevent yourself from being taken advantage of by the manipulative tactics of a predatory creditor.
Your creditors have likely seen cases in the past where an individual had attempted to file bankruptcy themselves without the guidance of a qualified professional only to see the case closed or dismissed, allowing the creditor to continue to pursue the debt freely once again. This is call “Pro se” filing. By retaining a reputable MN Bankruptcy Law Firm to represent you through the bankruptcy process you send a clear message to creditors and the collection agencies working on their behalf that you are committed to filing bankruptcy and partnered with a professional which will assure they do not take any action against you which is not clearly permitted by law.
Having a skilled MN Bankruptcy Attorney at your side throughout the bankruptcy process can considerably reduce the amount of time and effort involved in the filing process and in many cases hiring a lawyer can be more affordable than tackling such an undertaking by yourself when you consider the time and effort you will need to invest in your bankruptcy filing on your own.
Creditors also are more likely to take you seriously and cease aggressive collection practices or legal proceedings when they become aware that you have retained a bankruptcy professional to handle your needs. If your creditors continue to pursue you for debts associated with your bankruptcy your MN Bankruptcy Attorney can help assure you the fair treatment you deserve and combat these malicious practices.
Are you are suffering from financial difficulties? Why continue to do so another day? Give one of our offices at Kain & Scott a call today and let us help you get on the road to debt freedom.