Should you or Shouldn’t you tell?
In general telling your creditors you are filing for bankruptcy should help you. Once you have retained an attorney you can tell your creditors that you have done so and that they need to contact your attorney regarding any debt you may own. The Fair Debt Collections Practices Act FDCPA prohibits third party collectors from contacting you regarding any debt once you have retained an attorney. This can relieve a lot of stress and hassle if you are drowning in debt and being harassed continuously by creditors.
When wouldn’t I tell?
Until you actually file for bankruptcy a creditor can legally continue to collect on the debt that you owe. This means a creditor, upon learning of your intention to file bankruptcy, could file a complaint for damages for failure to pay your debt or could initiate a replevin action to repossess a vehicle or a foreclosure action to take your home. It is best to ask your bankruptcy lawyer when and if you should tell creditor’s of your intent to file for bankruptcy.