I’m Just Starting to Become Delinquent With Credit Cards And Going to File Bankruptcy. Should I Tell My Creditors? – Laura

“Dear Steve,

I have recently hired a bankruptcy attorney and am in the process of making payments to him to file my case, which unfortunately he cannot do until I make the last payment. I should have this taken care of by May, 2009. I am now just starting to become delinquent with my credit cards.

Would it make sense for me to send a letter to my creditors notifying them of my intent to file bankruptcy and let them know that they need to contact my attorney regarding my account from here on out as it will be several months before my case is actually filed?


Dear Laura,

You could send a letter but it will probably be just an effective/ineffective to tell the collections people on the phone what your intentions are. Don’t be surprised if it makes no difference to them.

The reason I’m not enthusiastically supporting the letter writing option is that creditors are notorious for never getting written correspondence properly entered or linked to the client account. If you rely upon sending the letter as full notification to your creditors and then dodge the calls, that’s probably not a smart idea.

If the bankruptcy attorney has been retained and has advised you to tell them to call the bankruptcy attorney, I would do that. But be sure you get the permission of the bankruptcy attorney first. The last thing you want the creditor to be told when they call the attorney is that they don’t represent you until you make the final payment.

So, call your bankruptcy attorney and ask the office the best way to handle this situation in coordination with them. Once you do file bankruptcy then be sure to write down you filing number and give that to the creditors if they call you.

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Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
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