Debt Collection After Bankruptcy

The Discharge Order is a federal court injunction. It prohibits creditors from taking any action to collect a discharged personal liability.

“I Didn’t Know” Is Not an Excuse

Creditors often claim they “didn’t get notice” of the bankruptcy. In most cases, this doesn’t matter. If the debt was dischargeable, it is discharged. Once you tell them “I filed bankruptcy” and give them the case number, they must stop immediately.

Types of Illegal Collection

• Calls and Letters: Demanding payment on a discharged credit card or medical bill.
• Zombie Lawsuits: Filing a new lawsuit in state court for a debt that was wiped out years ago.
• Refusal to Release Liens: Holding onto a judgment lien that was supposed to be avoided during the bankruptcy.

Enforcing Your Rights

If a collector is hounding you for discharged debt:

1. Tell Them Once: “I filed Chapter 7 bankruptcy in 2024. Case # 24-12345. Do not contact me.”
2. Document It: Keep a log of any calls or letters received after that warning.
3. Reopen the Case: We can file a motion to reopen your bankruptcy case and ask the Judge to hold the creditor in Contempt of Court.
4. Damages: You can recover your attorney’s fees, actual damages (lost wages, stress), and potentially punitive damages for their defiance of the court order.