You are here:
Creditors and Bankruptcy/bankruptcy
Advertisement
Question
About 6 months ago I contacted my credit card companies to work out a payment plan on my debt. Now, six months later, I am going to have to file for bankruptcy because my husband and I can no longer make the payments. Two of the credit card companies still have an automatic withdrawal for payment coming out of my checking account. Do I need to contact them and have them stop automatic withdrawing from my account or will they have to stop once I file for bankruptcy (I haven't filed yet)? My husband thinks they can continue to withdrawal even after I file, until the case is settled. I am just not sure how all this works.
Thanks for your time,
Heather
Dear Heather,
Thank you for your question.
Contact your creditors and inform them of your intentions. Be prepared to provide them with your attorney's information, and request a cease on the automatic payments.
Once the bankruptcy is filed your under the courts protection (known as an automatic stay) the creditors receive nothing until the outcome of the bankruptcy.
Good Luck
Ontrack Financial Group llc
Related Articles
Answers by Expert:
Ontrack Financial Group llc
Expertise
With the credit market on a brink of collapse, the future of having good credit will be paramount. Loans will be near impossible to obtain with strict lending practices around the corner. Debt collectors and Law offices will use even stronger tactics to recover more of your hard earned money. Protecting you and your credit has to be a top priority. In 2000 Ontrack Financial Group llc founded the credit arbitration movement. More and more companies entered into the arena and new business models joined old ones. Only one company has the attitute and aptitude to truly assist our clients. Ontrack Financial Group llc is that company! With our proven credit arbitration solution, you can become Charged Off Debt free within three years or less. Our clients have eliminated their Charged Off Debts with our service and avoided communication with collection agencies and law offices in the process. Since the inception of Ontrack Financial Group™, we have continued assisting our nation-wide clientele with their burdensome unsecured debt and has enrolled thousands clients in its programs, managing millions of debt for its clients without one complaint. Ontrack Financial Group™ is a for-profit, private company and is not affiliated with the credit bureaus or the credit industry. As a result, our services are unbiased and independent, which allows us to better serve the consumer.
Experience
Please read about us at Https://www.OntrackFinancialGroup.com
Education/Credentials
Banking & Finance
©2012 About.com, a part of The New York Times Company. All rights reserved.