How Will My Creditors Find Out About My Bankruptcy?

How Will My Creditors Find Out About My Bankruptcy?

Some people may say they file bankruptcy because they have too many bills to pay. Other people may claim they file bankruptcy because they have taken too much harassment at the hands of certain creditors or debt collectors. Of course, filing bankruptcy is often the result of a combination of burdensome debts and excessive or annoying creditor contact. Once a bankruptcy petition is filed, it may be a priority to stop certain creditors or collection agents from contacting a debtor and continuing their present pattern of harassment.

Filing a bankruptcy case involves completing and filing a bankruptcy petition designating under which chapter of the bankruptcy code (Title 11) the case is being filed. A bankruptcy petition is no more than a few pages and usually contains an estimate of assets, liabilities, and the number of creditors that the debtor has.

Once anyone files bankruptcy, the automatic stay goes into effect. The automatic stay is a powerful mechanism of federal law that prohibits most collection efforts by most creditors. The main purpose of the automatic stay is to stop the efforts of debt collectors so that the debtor may regroup through bankruptcy and gain a fresh start without the interference of creditors and their collection agents. However, there will always seemingly be some creditors who choose not to abide by the requirements of the automatic stay and, instead, continue their collection efforts and harass bankruptcy debtors.

To fully implement the effect of the automatic stay, debtors need to give each of their creditor’s notice of the bankruptcy filing and explain how such filing triggers the automatic stay and how it works.

Debtors in Utah are required to file their master mailing list within two days of filing their bankruptcy petition. The master mailing list is a simple document that contains a list of the names and addresses of each of the debtor’s creditors. The Clerk’s Office of the U.S. Bankruptcy Court mails a notice of commencement of a debtor’s bankruptcy case to each entry on this list. This notice of commencement explains the effect of the automatic stay to recipients.

The sooner this list is filed, the sooner the court will send out notice of the bankruptcy case. Thus, it is wise to file this master mailing list with the bankruptcy petition, so notice is sent as soon as possible to the debtor’s creditors rather than waiting for a later time during the two-day filing window.

Once a debtor files his or her creditor mailing matrix, aka master mailing list, each creditor will receive a notice detailing the case number, chapter, and any relevant deadlines for filing proofs of claim or objections to discharge.

If an emergency exists because of an actual or threatened repossession or garnishment, a debtor’s bankruptcy attorney usually will provide immediate notice of the bankruptcy to a creditor by telephone and electronic transmission.

The Morrison Law Group strives for complete client satisfaction with the services that we provide throughout a client’s bankruptcy case, as well as the ongoing services that we provide post-bankruptcy. Not all Utah Bankruptcy attorneys can make this statement, but the Morrison Law Group is not like other Utah bankruptcy law firms. We can help if you are facing possible foreclosure or just a few months behind on your mortgage payments. Call 801.456.9933 today to schedule a FREE consultation. We have locations in Ogden, Logan, Sandy, and St. George to serve the residents of the counties of Weber, Cache, Salt Lake, Utah, Morgan, Davis, Washington, and surrounding areas.

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Theron Morrison

Utah’s top bankruptcy and consumer protection attorney.