Expert: David - 8/21/2009

Question
Hello.

Overwhelming business debts for which I provided a personal guarantee as well as a sharp drop in income for my small business have caused me to consider filing personal bankruptcy.  Although I do not now have the income necessary to pay my credit card bills, I am hoping that a new project or two may 'save the day' in the months ahead.  I am now receiving repeated calls from bill collectors --as many as 10 or 15 calls every day, 7 days a week.

I've told one or two that I am considering bankruptcy and currently cannot pay my bills. Needless to say, this does not deter them--they all 'insist' that I give them my bank account information so they can accept an immediate payment.  I usually end up hanging up as they will not accept no for an answer.

Here is my question: Although I will most likely not file a bankruptcy petition for 6 or 7 months, should I write a letter to creditors to tell them that a filing is planned, providing my attorney's contact information and asking them to cease their collection calls?  Is there any particular language I should use or avoid using in this letter?  Will they be bound to stop calling me? Will  interest and late charges continue to accrue?

If it makes a difference to you, I am a resident of Massachusetts and own a Sub S corp.

Many thanks for your service!

Answer
Charlie,

I would not inform the collection agents of any ideas about BK.  Google cease and desist letters for debt collectors and you should get some proper language.  By law they have to stop calling you if you insist on all communications to be through mail.

Go to financialscoringsolutions.com for help rebuilding your score when your ready.

David
financialscoring@sbcglobal.net