Filing bankruptcy...will scheduled collection agency payments end?

Question

I have scheduled to pay installments on a credit card debt that was sent to a law firm (collection agency). Well, I just do not have enough funds to pay for this debt, my other debt, and my regular bills. I've considered bankruptcy before, but never went forth with it. Well the agency is harrassing me with calls saying I made a promise to pay. I've given them my account information, and there's plenty money...so I do not know what the problem is with them. I decided I do not want to go through this with all my debts, so I'm wondering if I file bankruptcy, will the commitment be null with the debt collector or will I still have to pay?

Answer 1

Your scheduled payments will cease if you include them as part of your bankruptcy filing.

I don't understand the contradiction of "...I just do not have enough fund to pay" and "....there's plenty money". If you have access to funds, why not pay your debts?

In any event bankruptcy is for those who have no foreseeable means to pay their existing debts not for those who just want to bail. Besides your credit will do 10 long years of hard time.

If you have reoccuring payments to your credit card and they don't want to take it then simply change your method of payment. There's a probability that you're having them charge your debt to your credit card in hopes of including the credit card balance in your bankruptcy, so ultimately they won't get paid. If you're sincere about paying, send them money orders for the same amount(s) you want them to charge.

I think you're trying to pull the wool over their eyes.

Answer 2

When you file bk they ask you to list ALL outstanding debts.  It does not matter if you were or were not making payments. You have to make up your mind what you really want to do.

Once you file your bankruptcy they will receive a notice to stop and crease all calls and communication with you.

If you file bk you will not be able to purchase anything or rent a place for seven to ten years.

Way back I had a creditor that would not stop calling me after I had told them that their information was not current.  I warned them if they called again that I would re sight the Serenity Prayer. Every time they called I would resight the prayer, and after three calls they finally got the message, and the calls creased.

Answer 3

You have to be careful with this. The other responders are correct that all debts listed in a bankruptcy filing void out any payment arrangements and the creditor is legally obligated to cease contact.  However, since the new BK law (which is a terrible law BTW) you can no longer simply wipe out a credit card debt. The CC companies now have a legal recourse to demand you pay back at least a portion of what was owed.  A bankruptcy judge will establish a payment plan for you. So yes, you will still be obligated to repay at least some of what you owe them.

" I've given them my account information, and there's plenty money...so I do not know what the problem is with them"

My first question is if there is plenty of money why are not paying it off? My second question is why did you give them your account info? NEVER do that.  You should close that account and establish a new one, then make payments either electronically with online banking or write a check and mail it. But it does not sound like you are taking this very seriously.  It's not their problem, it's yours. You are the one who needs to be proactive and get it out in the open and on track otherwise it will only get worse.

Answer 4

after filing bankruptcy the court will send out letters to all your creditors that you filed for bankruptcy so they will stop harassing you and if they do they get in trouble for it. if i were you i would try to find a way to settle your debt instead of filing bankruptcy if its not a huge amount like 6 digits.