by S. Graveson

Created on: August 30, 2010

So you've just been declared bankrupt by the judge and are sighing a breath of relief, the nightmare is finally over and you can get back on to your feet. Except for one problem, the creditors are chasing you up for money they still think you owe them, despite the fact you're case was approved by the judge. What do you do next?

Generally when the company themselves are calling you, usually for something like a credit card payment, and you've just had your bankruptcy they've genuinely not been made aware of it. If it was inside the past week or so they will usually ask for the details of the case, things like court address and case number. After getting he details they will generally put a hold on the calls and the letters to allow the official documentation to come through. If they ask for a payment make sure you do not make one, there is no reason at all to make a payment despite what they may tell you. If your debt has been discharged there is no debt.

If they call again a few weeks later, then you get in touch with the lawyer or firm you used to get the bankruptcy arranged with. It's likely that the creditors either don't have the official documentations of the bankruptcy or they have made a mistake with them, get the legal firm to resend them. Don't worry about the threats of penalty payments as they don't effect you if your bankrupt, and even the threat of harming your credit rating shouldn't be taken seriously (due to the damage of the actual bankruptcy). If they continue to call after resending the documents go to your local free advice office as the company are committing harassment and it needs to be stopped. They aren't allowed to ask for a payment after they've received the documentation, if they continue to do so they are breaking the law.

However quite often it's not the people you owed the debt to that are calling you but a third party debt company. They may have bought the debt hoping to cash in on it. They will have paid a only a tiny amount for the actual debt maybe even as little as a single %, but they will hope to recoup much more. The original lender has sold it to recoup something, something is of course better than nothing, whilst the 3rd party are attempting to recoup more than they paid. These companies aren't allowed to contact you after you've been declared bankrupt, so again go to a free local advice office (in the UK the CAB are the best option) and they will help you end trouble.

Sadly however for every genuine mistake by the banks there is a person on the end of it who feels abused and vulnerable. If the person knows they shouldn't make a payment whilst bankrupt and should just pass on the information they have they creditor should finally leave them alone, however if you don't pass on the information they will try over and over to contact you, prolonging the problem.



Please note:
This advice mainly applies to citizens of the UK though can generally be followed internationally

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