CALL NOW!
FREE PHONE/VIRTUAL CONSULTATION

How Do You Know if a Creditor is Violating a Bankruptcy Discharge?

Violation Of Bankruptcy Discharge Pasco, St Petersburg, Tampa Florida.Creditor violations of debt discharge in bankruptcy

Filing for bankruptcy offers a variety of benefits, the most important of which is the debt discharge.

After bankruptcy is successfully completed, your debts are discharged, which means you are no longer obligated to pay what you owe and creditors are not allowed to attempt collection efforts on those debts. The relief and clean slate that comes with debt discharge are often the most important reasons people choose to file.

But what happens if you hear from a creditor once your discharge is complete? Or you notice your bank account has been levied or your wages garnished in relation to a debt you assumed was discharged?

How do you know what creditors can and can’t do and what’s in violation of your bankruptcy discharge?

Here are a few things to consider:

Was the Debt in Question Dischargeable?

First, it’s important to understand what debts were discharged and which ones weren’t eligible for discharge when you filed for bankruptcy.

Not all creditors are discharged and there are some debts you might still owe, even if you filed for bankruptcy. A few of the most common types of non-dischargeable debt include court-ordered debts, taxes, and student loans. To learn more about non-dischargeable debts, check out this information from The Balance.

Did You Reaffirm the Debt?

If you reaffirm a debt in bankruptcy you’re still legally obligated to pay what you owe.

Reaffirming a debt can keep the property safe from repossession, but only if you do not fall behind on payments. Lenders are not only entitled to repo possessions if you don’t pay what you owe, but they can also file a lawsuit to collect the difference in value.

Are You Dealing with Zombie Debt?

One of the most common ways debt can come back to haunt you after it has been discharged in bankruptcy is through zombie debt.

Zombie debt is a dead debt that comes back to life after it is sold to another creditor. Despite it being wiped out in bankruptcy, it can still be sold, which often leads to the new owner attempting to collect on it. Their hope is you don’t realize you are no longer obligated to pay.

This new collector doesn’t have any more right to collect than the old owner of the debt, but many of them give it a try anyway.

Is a Creditor in Violation of the Discharge?

If a creditor tries to collect on a debt once it’s discharged, you could have a legal case against that creditor. There are a few exceptions.

For instance:

  • Debt collection efforts that occur as a result of a credit reporting error are not illegal. Failing to properly report the discharged debt also doesn’t violate the discharge injunction. You aren’t obligated to pay, but the collector is not breaking the law.
  • If someone else is linked to the debt, he or she remains responsible for it unless that person also files for bankruptcy. This means if you co-sign a loan and the other person files for bankruptcy, creditors are free to attempt to collect the debt from you.
  • Debt collection efforts linked to debts that did not qualify for discharge are not illegal. You are still obligated to pay on any debt that was not discharged in bankruptcy and collection efforts related to these debts is legal.

Every situation is different and the only way to confirm that a debt was discharged and you are no longer obligated to pay is to have a bankruptcy attorney review the information related to that debt. If you have questions or concerns about a debt or you believe a creditor is violating your bankruptcy discharge, the best thing you can do is contact an experienced bankruptcy professional.

If you’d like to know more about bankruptcy or want to speak to a Tampa area bankruptcy attorney about your obligations regarding certain debts, contact the Law Office of Robert M. Geller at 813-254-5696.

Archive

Video Testimonials

Tampa Bankruptcy Law Blog

Here’s How You Can Rebuild Your Credit

How do you repair this damage and rebuild your credit after filing for bankruptcy? Many people believe that filing for...
Read More

How Can You Practice Smart Credit Card Management after Bankruptcy?

How can you learn better credit card management after bankruptcy? Using credit after bankruptcy is an intimidating experience for many...
Read More

How Do You Improve Your Credit Score?

How do you improve your credit score? Here's what you need to know. Your credit score plays an important role...
Read More

Does Bankruptcy Credit Counseling Work?

Bankruptcy credit counseling helps you emerge from bankruptcy understanding credit management. People filing for bankruptcy must take two courses regarding...
Read More

5 Things That Boost Your Credit Score

Your credit score has a major impact on your financial life. You can be a great person with a bad...
Read More

How to Correct Errors on Your Credit Report after Bankruptcy

How do you deal with errors on your credit report after bankruptcy? In a perfect world, you could ignore your...
Read More

Tips for Rebuilding Your Credit after Bankruptcy

One of the primary goals after filing for bankruptcy is rebuilding your credit. As tempting as it might be to...
Read More

I’m Starting a New Life and I want a Financial Fresh Start – Should I File for Bankruptcy Now or Wait?

As the say goes, “when it rains it pours.” If you’ve found yourself experiencing financial difficulties while also dealing with...
Read More

What Does It Mean to Get a “Financial Fresh Start” in Bankruptcy?

Financial Fresh Start You’ve probably heard it before. “Bankruptcy gives you a financial fresh start.” It’s something stated on this...
Read More

Tips for Overcoming the Negative Emotions of Bankruptcy: How Can an Attorney Help Me with My Finances?

As advantageous as bankruptcy is when you are struggling financially, it’s still a stressful experience. Some people have a tough...
Read More

Bankruptcy

For The Next 5 Days GET A FREE BOOK About Bankruptcy

Learn More

Infographics

We are A Debt Relief Agency.
We help people file for bankruptcy under the Bankruptcy Code

Pay Online Bankruptcy Courses Newsletter Subscription

NACBA Logo avvo1 avvo2 avvo3 LEA BBB Logo RG Seal

Call For A Free Initial Consultation

813.254.5696

Tampa Office

Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 254-5696
T: (800) 853-7549
F: (813) 253-3405

Map And Directions

St. Petersburg Office

Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G
St. Petersburg, FL 33701
T: (727) 532-3939

Map And Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
T: (813) 336-2320

Map And Directions