Legal types - procedural question

[boomerang]

I'm a business owner and a couple that has a contract with me is filing bankruptcy. I have been notified by mail that a hearing will be held by the United States Bankruptcy Court for the Eastern District of Michigan in March. It goes on to state that I cannot attempt to collect the debt through the phone or by mail, etc.

My question is, at this point must I cease any efforts at collecting payment? Or, are they not officially in bankruptcy until the court rules they are in bankruptcy? The wording to a layman (me) is not clear.

Just for the sake of clarity, they have been paying monthly as agreed and have never been late or missed a payment. They are automatically drafted by a third party who will begin making phone calls, sending emails and letters within a few days of a default. I do understand that I will have to file paperwork and get in line for hopes of repayment whether it be partial or in whole. The question is, do I need to contact the billing company now and tell them to cease billing and to not contact the couple in any way or can it wait until a formal declaration of bankruptcy has been received by me?

My attorney is out of town for a week and their next payment will be drafted before he returns which is why I'm asking.

 

[MomentsofSanity]

IANAL

If you've been notified, you've been included in the filing for bankruptcy. As a general rule the minute a creditor is notified that the debtor has filed they are to cease all collection efforts. Pretty standard across the board. Personally I'd say yes, notify your billing company to cease of now until you speak to your actual lawyer.

http://www.michiganbankruptcy.com/faq.html

 

[Sho'Nuff]

NM. After thinking about this more I simply decided to delete the post. I'm not going to be the poster child for malpractice/unautheorized practice of law vis a vies an internet forum.

 

[Raizinman]

My opinion is: Go ahead and send another notice. The bankruptcy courts from my experience understand automated billing and sending another bill or two, or three until the accounting department can stop the billing is pretty normal. Hopefully, you will get a few more payments. Heck, it might be all you can get. As for the bankruptcy hearing; plan on attending. Often, if you can show fraud or intent to fraud you might be able to avoid bankrupting your debt. For example: If you can show that in January John Smith knew he was over extended and was not able to pay his bills, but went ahead and purchased on charge some appliances, knowing that he could not pay the bill, that could be interpreted as fraud and might not be dismissed in a bankruptcy.

This is not legal advice, but is legal information. There is a differene.

 

[highland145]

dp

 

[highland145]

IANAL

If you've been notified, you've been included in the filing for bankruptcy. As a general rule the minute a creditor is notified that the debtor has filed they are to cease all collection efforts. Pretty standard across the board. Personally I'd say yes, notify your billing company to cease of now until you speak to your actual lawyer.

http://www.michiganbankruptcy.com/faq.html

This, imo, and ianal but have had a lot of BK's filed for $$ owed to me. Also, iirc, you're a corp sub s which means that you must have your lawyer go to the BK meeting. You can't represent yourself unless you're a sole prop. For me, $700 for a lawyers to collect $500 doesn't add up.

This is not legal advice.

 

[Jeeebus]

PM me the case number. I'll take a look.