Any downside to notifying creditors I've retained an atty?

[PVS]

I've paid the attorney's retainer to file a 7 soon.
It would be nice to inform the collectors that I've done so to slow or stop the phone calls- although with google voice I'm pretty insulated from them.
Is there a downside to letting them know? I'm 2-4 months down on everything except a car loan. Is it possible that they would escalate efforts until the file date? In other words- better to lie low until filing?

[fireworks]

Depends on how soon, I suppose. We quit paying in mid-January a year ago and retained an attorney in early February thinking we were filing within a couple of months, started telling creditors shortly after. Various things have come up and we're now getting really close to filing almost a year later. Hardly any of my creditors have called me more than once - I give them the attorney's number and they go away. No lawsuits yet.

[MSbklawyer]

I've paid the attorney's retainer to file a 7 soon.
It would be nice to inform the collectors that I've done so to slow or stop the phone calls- although with google voice I'm pretty insulated from them.
Is there a downside to letting them know? I'm 2-4 months down on everything except a car loan. Is it possible that they would escalate efforts until the file date? In other words- better to lie low until filing?

My experience with my clients at least, is that once the creditor is sure that a bankruptcy attorney has been retained, they pretty much leave the debtor alone because they know that they are running a rabbit trail, so to speak.

Now, the oldest trick in the book is for debtors to tell their collectors that they've filed for bk or have retained and attorney to do so, when in fact they've done neither. So the creditor / collector is going to want a case number or the name of the attorney so that they can call and verify.

[HHM]

No downside.

[fireworks]

All of them wanted both my attorney's name and case number. Since we hadn't yet filed, I gave them the attorney's info and told them to contact him for the case number or any other info.

One creditor (USAA I think) has called every few months to make sure that we are still planning to file bankruptcy. I tell them we are, they tell me to have a nice day and we're done. GE Money bank sends letters every couple of weeks "requesting bankruptcy information" with a form to fill out and return. I've given all of those to my lawyer, no idea what he's done with them. Most likely ignored them.

I still get a few phone calls from collectors as our accounts are sold through various different groups. I lost track a long time ago of which accounts have been bought by who. Each different collector who buys the account calls me once, gets the attorney's info and rarely calls again. If they call a second time I mention "FDCPA" and "recording this call" and they go away.

All that to say, no downside, unless you plan to drag your case out for a VERY long time. Mine's been almost a year.

[sickandtired]

I guess it depends. We told our creditors to contact our attorney and one of them actually filed a suit against us. They never served us so nothing ever went forward with it, but if they had they would have gotten a judgement on us before we were able to file, because we just now got the money together to actually file this month.

[OhioFiler]

I guess it depends. We told our creditors to contact our attorney and one of them actually filed a suit against us. They never served us so nothing ever went forward with it, but if they had they would have gotten a judgement on us before we were able to file, because we just now got the money together to actually file this month.

How could they file a suit yet not serve you?

[Dannmcg357]

I don't know what the legal ramifications might be, which is what I have worried about. Meaning I wouldn't give them a heads up fearing they might move to suit and get a judgement which I understand complicates a BK. But I think it falls under the same logic as "Never argue with a drunk or a crazy person". So I just avoid them or tell them "I am doing all I can, I'll let you know as soon as I come into some money." Which is a half truth, but not really a lie either.

[sickandtired]

How could they file a suit yet not serve you?

Well maybe im wording it wrong. I dont know how the law works, but we got a letter in the mail from a debt relief company saying they could settle our suit. I then went and looked on our state's website for cases and found they had one pending against us but were waiting to serve us. We were never serve and I assume its been dropped or whatever they do. Anyway, just saying this happened as soon as we informed them of the BK.

[PVS]

We told our creditors to contact our attorney and one of them actually filed a suit against us.

Yep, this scenario is one of my concerns. Additionally concerned that car loans would be repo'd and mortgage company would not work on working out a repayment plan to bring me current if I notify them of my intent to file. It seems to me that there are downsides to notification, with the only upside that the harassment slows or stops.

[MrSmithster]

i have heard not to notify until you have a case number. think of this, you notify them, but something horrible comes up and maybe you have to take on some more debt(like me, i had over $15K in unused credit still on my cards when i filed, some with zero bal). and since you notified creditors, they can use that later to say you had no intention of ever paying for any charges made after notifying them.

[sickandtired]

Yep, this scenario is one of my concerns. Additionally concerned that car loans would be repo'd and mortgage company would not work on working out a repayment plan to bring me current if I notify them of my intent to file. It seems to me that there are downsides to notification, with the only upside that the harassment slows or stops.

Actually with the car we called them and told them to come get it because we were doing this. We knew we couldnt pay for it after BK so no use of keeping it. After we called and told them this they really tried hard to get us to keep it and even offered to defer several payments. Would have been nice if we were able to keep it, but couldnt. I really dont think car companies want to repo if they dont have to.

[PVS]

Actually with the car we called them and told them to come get it because we were doing this. We knew we couldnt pay for it after BK so no use of keeping it. After we called and told them this they really tried hard to get us to keep it and even offered to defer several payments. Would have been nice if we were able to keep it, but couldnt. I really dont think car companies want to repo if they dont have to.

But doesn't that go on your credit as a repo, and not part of the BK if they come get it before you file? It may not matter now, but down the road...

[chad9162]

Actually with the car we called them and told them to come get it because we were doing this. We knew we couldnt pay for it after BK so no use of keeping it. After we called and told them this they really tried hard to get us to keep it and even offered to defer several payments. Would have been nice if we were able to keep it, but couldnt. I really dont think car companies want to repo if they dont have to.

No offense but you don't want them to repo prior to BK because it counts against again twice! If they repo after BK, its included in BK so it doesn't really count as a repo. Now you will have a repo and a BK.

[chad9162]

But doesn't that go on your credit as a repo, and not part of the BK if they come get it before you file? It may not matter now, but down the road...

Haha you beat me! Your so smart!!