Alabama Bankruptcy — Can I Still Sue An Abusive Debt Collector If I File For Bankruptcy?

Yes — if you file for bankruptcy (normally a chapter 7), you should still be able to sue an abusive debt collector.

Here’s how this works.

If you file for chapter 7 bankruptcy, the bankruptcy trustee has the right to look at all of the assets in your bankruptcy case which includes any potential lawsuits.

But normally the trustee will “waive” or otherwise agree not to pursue the case for you which means you can file the lawsuit against the abusive debt collector after you come out of your bankruptcy which is normally about 90 days after you file.

Here’s where this makes a difference.

Sometimes our debt can be overwhelming and bankruptcy is the only legitimate option.  But we have also been abused by debt collectors.

Well, you don’t have to choose which one to take care of — you can file the bankruptcy and sue the debt collectors that broke the law (the FDCPA — Fair Debt Collection Practices Act).

You must disclose any potential lawsuits you have when you file for bankruptcy and each situation is different but in most cases the trustee will not be interested in your FDCPA lawsuit.

If you live in Alabama and have questions about the FDCPA or bankruptcy, give us a call at 205-879-2447 or contact us through our website and we’ll get back with you right away.


  1. Kayyum says:

    Yes, but it’s a secret .I’ll share with you! First, when you say stop do you usnredtand you are halting the process only and not the lenders rights under sate code. Anything can be negotiate up till a notice of sale (i.e. California). Then all bets are more or less off. If you want to negotiate a settlement then talk to the lender before a sale date is set. Attorneys can also seek a temporary injunction for a valid claim against your lender. NOW THE SECRET: But if you think you have a wrongful foreclosure action then DON’T stop the process let it continue. After the home goes back to the lender it’s only then you have grounds for a wrongful claim. Stay in the home afterwards by responding to the unlawful detainer the lender will file to have you removed. Make your claim strong as to decepetive and predatory isntances a good auditor can determine for you. Some folks have gotten back their home at 50 cents on the current loan against their house under a negotiated settlement.

    • John Watts says:

      That is one strategy to let the foreclosure happen.

      The danger is that once the foreclosure happens, it cuts off some options. You still can fight back but normally it is better to stop the foreclosure before it happens.

      Thanks for your comment.

      John Watts

Leave a Comment