Does an Automatic Stay Effect Debt Incurred after a Bankruptcy Filing?

There are many reasons why an individual might file for bankruptcy. Usually, the bottom line is that the debtor gets tired of being harassed by their creditors and are indirectly forced into filing for bankruptcy. With the constant bombardment of phone calls and threats, many people end up sitting in the office of the bankruptcy attorney asking for help. At first, before the consultation with a bankruptcy attorney, most people don’t know the benefits of filing bankruptcy. One of those benefits is the automatic stay. When the bankruptcy attorney files the bankruptcy petition the automatic stay is put in place stopping creditors from collecting on the individual that is filing for bankruptcy’s debts. In fact, the creditor is not even allowed to call the debtor to discuss the matter. If they have something to say, they will have to do it through the bankruptcy attorney.
Prior to filing the bankruptcy petition, the bankruptcy lawyer will collect a complete list of all the debtor’s creditors. This will be included with the schedules in the bankruptcy petition. The bankruptcy court will notify all the creditors of the pending bankruptcy filing. So when someone asks a bankruptcy lawyer, “Does an automatic stay effect debt incurred after a bankruptcy filing?” It basically could be answered in two ways. First, any time the debtor incurs any new debt prior to the bankruptcy discharge; the individual can notify the bankruptcy attorney to add it to the bankruptcy petition by filing an amendment. Any new debts can be added right up to before the bankruptcy discharge is finalized. Secondly, any debt that is incurred after the bankruptcy discharge, the debtor will be fair game for the creditors to collect on it and they will be responsible to pay it in full. If there is any question on debts that should be included in a bankruptcy filing, they should be discussed with the individual’s bankruptcy attorney.

Getting answers to those tough bankruptcy questions needs to be thought of before you make a decision when it comes to your financial problems. Finding the answers to help you understand your situation more clearly can help you make an informed decision about filing bankruptcy. Take a minute to call or fill out the form to have a FREE NO OBLIGATION CONSULTATION with a bankruptcy attorney in your area.