How to Send a Notice of Bankruptcy to a Creditor

To decrease the chances of trouble when filing for bankruptcy, make sure you list and properly notify all of your creditors. That includes creditors that may not show up on your credit report, such as landlords (in the case of renting), personal loans from friends and family and other debts that aren’t normally listed on the credit report.
Although a bankruptcy may, in certain circumstances, discharge an unlisted debt, if the creditor was not properly notified or the debt was unlisted, there may be a limit to the amount a debtor can recover if there is a stay violation by the unlisted/improperly notified creditor. A stay violation occurs when a creditor takes some kind of action which is specifically prohibited by the Bankruptcy Code after a bankruptcy case has been filed on behalf of the debtor. For example, if a creditor garnished a debtor’s wages or seized a bank account during a bankruptcy, the debtor can recover damages. But if the creditor was not properly notified of the bankruptcy, the debtor may not be able to receive the full amount in damages.
Under the bankruptcy law reform in 2005, creditors can request that bankruptcy notices be sent to a specific address. This special bankruptcy address is usually listed by each creditor on the debtor’s credit report. Debtors must send all correspondence regarding the bankruptcy to this special address designated for bankruptcy by creditors.