Dealing with Creditors after an Arizona Bankruptcy – Part 1 of 3

A common concern people have is how to deal with creditors after filing bankruptcy. Many people want to keep one particular credit card or continue using a specific doctor because of the “good relationship” they have established with this particular creditor. Because all debts must be included in your bankruptcy, even your favorite creditors will be discharged in the bankruptcy. This does not mean that you cannot repay them after filing. It just means that the creditor cannot force you to repay them.

As far as credit cards are concerned, your account will be shut down. While there is nothing you can do about the account being closed, you likely will be able to open a new account with the same company not long after you complete your bankruptcy. A lesser known fact is that recently bankrupt individuals can actually be good credit risks because they have no debt and they cannot file bankruptcy again for the next 8 years.

With doctors, the dynamic is a little different because there is personal interaction. This tends to incorporate an even stronger emotional factor into the equation. When a client wants to continue using a doctor, but must file bankruptcy, I advise my client to tell the doctor before hand of their intention to file bankruptcy. Although the doctor may not be pleased with the consequences of your bankruptcy, he/she will usually understand your need to file. Unfortunately, doctors deal with this issue a lot in today’s market. A doctor will probably continue seeing you, but may require you to pay all your bills up front before receiving the service. If you still want to repay the old debt to the doctor after the bankruptcy, you can, but are not required to do so.

If you have questions about bankruptcy, call Benjamin Skinner, experienced Arizona bankruptcy attorney for your FREE consultation today! (480) 648-8975.