What You Should Know About Automatic Payments

Before you file for bankruptcy, your bankruptcy attorney may recommend that you stop all automatic payments that are set up for your bank account. Doing so protects you from having creditors continue to withdraw money from your account, even after you file.

When you file for bankruptcy, your creditors are supposed to stop collection efforts immediately. This includes stopping any automatic payments they are taking from your account. However, some creditors don’t stop these payments in a timely manner, and some don’t stop them at all. This means that you could end up having less money than anticipated while you are negotiating your bankruptcy case and that you could be left without money to live on. To protect yourself, stop your automatic payments in advance of your filing, so that money can’t be taken from your account unexpectedly.

Your bankruptcy attorney at Cutler & Associates, Ltd. will make sure you are armed with the information you need to protect your rights as you go through the bankruptcy process.