Bankruptcy Debts Back in Collections

When you file for bankruptcy, it doesn’t always get rid of all your debts. Very often your stay against collections will provide relief, but it can also be short lived, especially when cases are dismissed without a discharge or repayment plan. In cases where bankruptcy is dismissed, you’ve wasted time, money, and energy, and now you’re back where you started.

In other instances, depending on the types of debts that you have, collections may remain even after you’ve gone through the process of bankruptcy. Despite all that effort and time spent, you might still have collection agencies coming after you, either while you’re still in bankruptcy, or many years later. Bankruptcy seemed like the solution, but it wasn’t enough, and when creditors and collection agencies are knocking on your door again, it can be hard to know what to do. You may not be eligible to file bankruptcy again.

Debt companies and consumer credit counselors can help in both of these situations. Not only is bankruptcy not always the best solution, it isn’t always the final solution. With help from licensed professionals, there are many other alternatives.

When Your Bankruptcy Case Is Dismissed

Not all petitions for bankruptcy are successful. You can put a lot of time and effort into making a case, only to have your petition rejected or dismissed by the courts. While you may have enjoyed a brief period of relief after you initially filed, when your case is dismissed and thrown out, your debts go right back into collections. Essentially, this means you either have to start all over again, sometimes waiting as much as half a year before you can file bankruptcy again, or you have to find another solution. Often, a better solution was there from the start, but you committed to bankruptcy because it seemed like the right path. Now what?

When your bankruptcy case has been dismissed, you may not be able to file again for some time. However, debt companies and credit counselors can provide many other solutions. They can get creditors off your back and create various debt management plans that will allow you to pay back what you owe, or sometimes, a lesser amount than what you owe. Often they can negotiate a settlement with creditors and lenders, or they can consolidate your debts into one easy payment which they administer for you, helping to alleviate the hassle of dealing with multiple stressful payments.

What To Do When You Still Have Debts After Bankruptcy

Sometimes bankruptcy only offers partial relief. Under chapter 7, for example, most of your debts may be discharged, meaning creditors will no longer come after you, but some debts are not discharged. The same can be true for chapter 13. Debts that are not discharged include most secured and non-consumer debts such as your house, car, and real estate.

In addition, debts that usually won’t be discharged in bankruptcy include debts for alimony and child support, tax debts from the last four years, educational benefits and government student loans, and debts related to criminal conduct, such as a DUI. In some cases, such as certain mistakes or fraud, a discharge can even be revoked after it has been granted.

So What Can You Do With All These Remaining Debts?

Again, debt companies and credit counselors have many answers. They can help you better manage your money and budget. They can get creditors to leave you alone. They can create various debt management plans, such as a consolidated payment plan. And sometimes they can even have your debts significantly reduced or eliminated through a debt negotiation or debt settlement. Talk to a consumer credit counselor or debt consultant to find out more.