What do you do if Collection After Bankruptcy Discharge Persists?
Collection after bankruptcy is barred. You clearly remember reading that following a bankruptcy discharge the law STOPS creditors from any further collection attempts.
Congratulations! You followed the rules and successfully discharged your bankruptcy. Months after your bankruptcy discharge you receive a demand letter from a creditor you thought was discharged.
Situations like this sometimes arise because the original creditor that was listed in the bankruptcy had sold its bad debt to a company that specializes in buying ‘bad debt paper’ for pennies on the dollar. Likely the original creditor sold the bad debt paper without notifying the buyer that the debt was discharged in a bankruptcy.
Contact a Bankruptcy Attorney
What do you do if collection after bankruptcy discharge persists? Step one is to contact a bankruptcy attorney. You may contact the attorney who recently filed your case or another bankruptcy attorney in your community. This attorney can review your past bankruptcy paperwork to confirm the creditor is listed and received proper notice. If the credit was listed and received proper notice, collection after bankruptcy is forbidden and they should not be contacting you to collect a debt that was discharged.
I am Orange County bankruptcy attorney, Michael D. Franco, a certified specialist in bankruptcy law in Orange County, CA. If you cannot locate your bankruptcy attorney, I might have time to help you figure out what is happening.
Bankruptcy Code is Clear – Creditor Abuse will Not be Tolerated
The bankruptcy code is clear. Creditors may not attempt to collect a debt that was discharged in your Chapter 7 bankruptcy. There are listings in bankruptcy protection to prevent creditor abuse in this area. Collection after bankruptcy is prohibited. That said, every case is unique and should be analyzed by an attorney.
Creditor abuse will Not be tolerated! Under the right circumstances, improper collection will result in sanctions and even attorney fees against the offending creditor.
The possibility of succeeding against a creditor depends upon the specific circumstances. That is why review by an experienced professional is key. It is very advisable that any person with a bankruptcy discharge who gets a collection call or letter speak with a bankruptcy professional ASAP.
There are circumstances where a non-filing spouse receives bankruptcy protection after the discharge of their spouse. Again, protection depends upon the facts of an individual case.