The purpose of filing bankruptcy is to give the honest, but unfortunate debtor a fresh financial start. The goal is discharge of debt, which means debts that were once due are no longer required to be paid after the bankruptcy case is over. When you file bankruptcy, your creditors are given notice and they are prohibited from contacting you to collect what is owed. This is also true after the bankruptcy is over. Upon receiving a discharge of debt, the creditor can no longer seek recover the balance of the loan. However, there are instances where a creditor continues to call or send letters, and if you are in this situation you should take action against the creditor.
Because the bankruptcy discharge acts as an injunction against future collection of the debt, if a creditor persists in doing so, you can file a case against that particular creditor. Some common causes of collection efforts after the discharge include:
● The debt being sold to a party that is unaware of the bankruptcy.
● Poor record keeping by the creditor.
● The debt was not listed in your bankruptcy, even though it was owed when you filed.
Sometimes simply advising the creditor of the bankruptcy information will stop the calls. This can be the case for a creditor that bought the debt from the original lender, but was not advised of the bankruptcy filing. In that instance, providing the case number and discharged date may do the trick. For debts that were inadvertently left off your bankruptcy, the Court still considers them discharged and advising the creditor as such should stop the collection efforts. However, there are cases where educating the creditor about the filing and discharge don’t work, and collection tactics continue longer after your bankruptcy case has ended. When that happens, you have the right to sue the creditor for violating the discharge order, and you can recover monetary damages for the violation. A trained consumer bankruptcy attorney can help in this endeavor, and will fight for the compensation you deserve.
If you are being contacted for payment of a debt discharged in bankruptcy, call a knowledgeable attorney to discuss your options. We can help you understand your choices and make a decision that works for you. Call a Plantation, Florida debt relief attorney today for more information.