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