Being in debt is an overwhelming experience for anyone. Many people end up over their heads in debt through no fault of their own, and may find themselves unable to repay their debts. Often, we feel like we are caught in the middle of our lives and our creditors. We may want to repay our debts, but lack the income necessary to do so.
Creditors are notorious for their aggressive collection attempts. Repeated phone calls and threatening letters leave us feeling like we have no recourse to protect ourselves.
Fortunately, bankruptcy can provide protection against the collection effort of creditors while we work towards a debt resolution. Once you file for bankruptcy, an automatic stay is an order issued. This order ceases all collection efforts and prohibits creditor from contacting you. Sounds too good to be true, right?
There are cases in which a bankruptcy case is dismissed; which leaves the debtor subject to the collection efforts of creditors. A bankruptcy case may be dismissed for a number of reasons. Your case may be dismisses if the information provided in the bankruptcy petition was inaccurate or incomplete. A case may also be dismissed if the debtor failed to complete the necessary steps in the filing process, such as complete a debtor education course or pay the necessary fees. Additionally, a case can be dismissed if the court feels any acts of fraud were committed.
Luckily, there are ways to deal with your creditors if your case is dismissed.
Contact A Bankruptcy Attorney
This is the most important aspect of protecting yourself from creditors when you are pursuing bankruptcy or had your case dismissed. Having an experienced bankruptcy attorney can make the filing process much easier and provide you with alternatives to bankruptcy in the event you decide not to pursue bankruptcy as a debt resolution option.
Your bankruptcy attorney can help you request to have your case reinstated with the court. They can expedite the process of reinstatement if your case was dismissed due to lack of paperwork or the completion of filing requirements. Your attorney can also provide you with alternatives when requesting to have your case reinstated, such as filing for Chapter 13 bankruptcy rather than Chapter 7.
Negotiate With Creditors
If your bankruptcy case is dismissed, your creditors will be notified by the court of this decision. After a bankruptcy dismissal, the automatic stay order is lifted; leaving your creditors free to resume collection efforts. What many people don't know is that you have the right to contact your creditors to request payment options. Creditors are usually willing to negotiate repayment terms rather than risk losing the chance for full repayment through a Chapter 7 bankruptcy.
Negotiating with the borrower benefits the credit card company by increasingly the likelihood the debt gets repaid, even partially. In most cases, you can obtain a repayment plan that suits your budget. In order to get the best deal in a credit card negotiation, it is important that you demonstrate intent for full repayment. If you are experiencing an extended financial hardship it is best to be honest with your creditor, letting them know the extent of your situation and what you can realistically afford to pay. You just might be surprised by the end result.
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