Collection after bankruptcy?

After filing bankruptcy, an automatic stay arises by operation of law that prevents your creditors or other debt collectors from attempting to collect debts.  You can think of the automatic stay in bankruptcy as a "time-out."  

If you obtain a bankruptcy discharge of your debts, your creditors will not be allowed to attempt to collect debts that were discharged in bankruptcy.   However, what if a creditor or collector attempts to collect a debt that was discharged in bankruptcy?  Know your rights.

Collection after bankruptcy is becoming increasingly common, as debt buyers or other third parties assigned your debt attempt to squeeze payments from you.  Your discharged debt can be sold for pennies on the dollar.  Sometimes, collectors will call or send you collection letters threatening to report you to the credit bureaus (national consumer reporting agencies).  In some instances, unscrupulous collectors will actually report you to the credit bureaus for a debt that was discharged in bankruptcy.

This can be extremely distressing, and you should consult a knowledgeable consumer lawyer.   The collector can be held in contempt of the Bankruptcy Court Order of Discharge for attempting to collect a discharged debt.  The collector can also be found liable for damages under Fair Debt Consumer Protection Act (FDCPA) and the Fair Credit Reporting Act (FCRA).   

If you filed for bankruptcy and obtained a bankruptcy discharge, you are entitled to peace of mind and to a fresh financial start.  Unscrupulous debt collectors threaten these.  You should consult a knowledgeable consumer attorney if a collector contacts you to collect a debt that was discharged in bankruptcy.  We regularly represent consumers in actions for damages against unscrupulous debt collectors.  We invite you to contact us directly, or to visit us online to learn more: Fair Debt Collection Practices Act.