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

[sickandtired]

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.

Well there was no way we could keep it at all. I had lost about a month of pay due to surgery and there was no money. My attorney advised us to do it this way, so we followed her advice. Too late to worry about now, its done and over with. We have no misconceptions about having to build credit back up later, we know how long its going to take.

[capthawg]

I have not filed yet, but once I paided a retainer to my attorney his secretary told me when I get a call tell them I am in the process of starting to file BK (Chapter 7) and to call my attorney. I give them the information and they thank me. I only have 2 credit cards and my mortage. I will let my house go. As of today I have informed the 2 credit card companies. Hopefullly I will have the attorney paid next month. the paper work is ready to hand over when the money is paid in full

[chad9162]

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.

What you purpose is called FRAUD!!! Using credit when you're insolvent is FRAUD. Seriously, if you can't survive without credit now, how will you survive after BK. BK isn't an instant fix. You need to look at your budget and cut expenses. Once I stopped paying everything, I was able to save money for emergencies and not have to rely on credit. Thats what you're supposed to do after BK.

[PVS]

Haha you beat me! Your so smart!!

Right back atcha. Personally I don't feel too bright lately...

[chad9162]

Well there was no way we could keep it at all. I had lost about a month of pay due to surgery and there was no money. My attorney advised us to do it this way, so we followed her advice. Too late to worry about now, its done and over with. We have no misconceptions about having to build credit back up later, we know how long its going to take.

Well your attorney's a tard! Sorry, but she should have looked at the bigger picture.....life after BK. By having a repo it will make it more difficult to get another vehicle.

Once you filed the automatic stay would have prevented repo so you could of had a rent free car for a bit. Most banks do not pay for relief of stay. Anyways, whats done is done. But at least you're here inquiring

[sickandtired]

Well your attorney's a tard! Sorry, but she should have looked at the bigger picture.....life after BK. By having a repo it will make it more difficult to get another vehicle.

Once you filed the automatic stay would have prevented repo so you could of had a rent free car for a bit. Most banks do not pay for relief of stay. Anyways, whats done is done. But at least you're here inquiring

Well as I said, there was no way we could keep it and we knew we couldnt file for several more months. They would have taken it anyway. I dont think we will be attempting to purchase a new vehicle again for quite some time anyway. We have decided that from now on we will drive "clunkers" or something we can save and buy outright. We really do not want to do any kind of credit ever again.

[chad9162]

If they call a second time I mention "FDCPA" and "recording this call" and they go away.

HAHA I did that too. Freaks them out. I also told them..."I have no friends, family, or job and that I'm a loser because I can't pay my bills." Dead silence! They don't know what to say. They try and use fear, pride, and embarrassment to get you to pay, but once you take that away they don't know what to do.

[chad9162]

Well as I said, there was no way we could keep it and we knew we couldnt file for several more months. They would have taken it anyway. I dont think we will be attempting to purchase a new vehicle again for quite some time anyway. We have decided that from now on we will drive "clunkers" or something we can save and buy outright. We really do not want to do any kind of credit ever again.

I understand your point. All I was trying to say is that "cars" are usually important, unless you can walk to work. If it was me I would have tried to delay the repo and taken the bank on the offer of deferred payments, etc. I would have told them I can afford this and worked something out at least until I could file.

Right now, like all of us, we hate credit and want to avoid it. So the clunker idea and buying "cash only" fits the situation. Unfortunately situations can change and if your read other post, people end up getting a new or used vehicle that requires an auto loan. Ironically after BK, sometimes its easier to qualify for a newer vehicle than a used one. I've owned a few clunkers and in the end it cost me more in repairs and stress than a used car payment.

All I'm saying is that people need to think about LIFE AFTER BK. Keep all your options open and don't close doors unnecessarily.

[chad9162]

No downside.

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.

These are smart individuals. Unless your are worried about repo'd vehicles then notifying creditors about pending BK is not going to hurt you. They may threaten law suits but it doesn't happen over night. In CA its take almost a year to get a court date and you could even stall longer. Most creditors aren't going to waste their money on filing a lawsuit if you are BKing them. In CA most courts through out a judgement once you mention BK.

I notified all my creditors when they called but I was current on my vehicles that I wanted to keep. If you are not current on vehicles and want to keep them as long as possible then I wouldn't notify them.

[nceguyfromne]

I would suggest evaluating this on a case-by-case basis. It is probably not in your interests to notify secured creditors, especially if you are delinquent. Let them find out when they are served official notice of your case and at that time you can deal with the reaffirmation question. With unsecured creditors there shouldn't be much of a down-side, but I would still suggest only notifying those that are causing problems. If they are generally leaving you alone, don't go out of your way to notify them just as a courtesy.

[maffy]

I've just retained my attorney and creditor calls are getting more frantic. I haven't spoke to any of them since the first week in Jan. I'm about 100 days late on cc's - but I want to wait a little while longer before letting them know about my filing for BK, just in case we run into any glitches and it has to be post-phoned... I feel it's better not to tip them off before it's necessary... but as nceguy listed above, I'm sure it's case-by case basis...

[nceguyfromne]

I've just retained my attorney and creditor calls are getting more frantic. I haven't spoke to any of them since the first week in Jan. I'm about 100 days late on cc's - but I want to wait a little while longer before letting them know about my filing for BK, just in case we run into any glitches and it has to be post-phoned... I feel it's better not to tip them off before it's necessary... but as nceguy listed above, I'm sure it's case-by case basis...

I think that is fine maffy. I filed around the 120 day mark and at that time only had one attorney, out of about 7 or 8 creditors, sending me their standard collection letters. The calls were frantic, but quite obviously the majority of my creditors were nowhere near the action stage. Unless you are receiving second or third notices from attorneys, you have time. They are going to do their homework and determine if you are a good candidate for a judgment before they pony up their money to take you to court. If things look to be in the later stages with an attorney then maybe it's a good idea to let them know you've retained someone. Many will drop what they're doing completely once they hear "retained attorney" as you become a bad investment for them and their client. Regardless, though, it's pretty much "game over" for them now that you have your attorney, unless you significantly delay your filing.

[csonly]

I would double check with your attorney to make sure it is okay to give his information. Since you paid the retainer, I'm sure this would be okay. I gave my attorney's information to any creditor that called once I got his okay (and paid him). The creditors said that they would note the account but if they don't get a case number in 30 days, they will call back, that was fine with me. We filed before the 30 days, so no one has called and once I gave them the attorney info, the phone calls came to a sudden halt. I should mention that we were not very delinquent on our credit cards, probably 30-60 days at the most.

[Bell30656]

By the time that I finally filed I had got good at dealing with collection calls. I had a lot of experience. Being the jerk that I was because of the jerks they were, I simply told each caller that I had retained an attorney to handle the matter. Some asked if I was filing bankruptcy or suing them for some violation but I didn't answer. I had a simple script:

"I have retained the firm of Dewey, Cheatum and Howe to handle this matter. They are members of the Georgia Bar Association and their contact information is easily obtainable by your counsel. You will have every opportunity to answer after you receive service. Now that I've told you in this recorded conversation that I am represented by an attorney, you are required by Georgia State Law to direct all questions to counsel. Please have a nice day and remember all calls to this number will be recorded for use as evidence in a future state or federal civil actions."

This was followed by a click as I hung up. Were the calls recorded? Mostly not since many came into my cell. Does a Georgia Law exist that they can't call me? Probably not but I was counting on them not knowing all 50 state laws. The calls really quit quickly. The actual Chapter 7 wasn't filed until about 10 days after I retained the lawyer.

[csonly]

Bell, I think that is brillant. Why didn't I think of that. I work from home, on production and the calls interfered with my income, so I would tell them that, but they don't care. As far as knowing laws of different states, most of the collection calls are not even made from this country, so I really doubt they know anything other than "get a payment right now, over the phone from these people, which the automated phone system dials for you, the more money you collect here and now, the more money you make." This is my interpretation of collection calls, based on my experience in dealing with them.