In a Chapter 7 bankruptcy filing, creditors are supposed to cease collection activities - stop harassing you – when they receive notice of the Chapter 7 bankruptcy filing. To continue that collection conduct makes them liable to court sanctions and attorney’s fees.
However, it can sometimes take a few days or weeks for creditors to receive notice. When your Chapter 7 bankruptcy petition has been filed, then the court will mail notices to the creditors listed in the petition.
There is a grey area between retaining a Chapter 7 bankruptcy attorney and filing a Chapter 7 bankruptcy petition. Some creditors will cease collection calls as soon as a Chapter 7 bankruptcy attorney has been hired, and other will not cease until the Chapter 7 petition itself has been filed.
This is one of many benefits of retaining an experienced bankruptcy lawfirm in Phoenix, Arizona, versus filing the Chapter 7 bankruptcy petition and representing yourself. Some Chapter 7 bankruptcy lawyers will contact the creditors ahead of the filing, which will often stop the calls.
