Your bankruptcy discharge is more than a piece of paper. It’s a federal court order prohibiting action to collect the discharged debt from you.
And it has teeth.
When creditors ignore a federal court order, it has unpleasant consequences. Or should have consequences.
So, my call to debtors is to stop being prey to unscrupulous debt collectors.
Discharge binds all creditors
All creditors who got notice of your bankruptcy are subject to the discharge injunction, with a few exceptions.
That’s why it’s so important to list everyone who thinks you owe them money in your bankruptcy schedules. Getting your schedules right.
The discharge is a public record, retrievable on PACER by anyone who is interested.
In short, there is no excuse for the creditor (or anyone who bought the debt from your creditor) to attempt collection of debts predating your bankruptcy.
And creditors who try to collect have effectively given you the right to sue them at their expense. [Read more…]