I Filed Bankruptcy To Get Out Of Debt, But Debt Collectors Keep Calling After Bankruptcy Discharge
Recently there have been reports of fake debt collectors demanding money for payment of debts discharged in bankruptcy, often under threat of arrest.
The National Association of Consumer Bankruptcy Attorneys issued a warning that “Under no circumstances would a bankruptcy attorney or staff member telephone a client and ask for a wire transfer immediately to satisfy a debt. Nor would the bankruptcy attorney and staff ever threaten arrest if a debt isn’t paid.”
Don’t fall for this scam. A bankruptcy discharge is an injunction prohibiting creditors from collecting discharged debts. An “injunction” is a fancy word for a court order that either prohibits or requires some action. If debt collector keeps calling after bankruptcy discharge they are violating the discharge injunction.
Section 523 of the Bankruptcy Code contains a list of debts that are not dischargeable in bankruptcy. Some examples of nondischargeable debt include domestic support obligations, recent income tax debt, and student loans. But debts like credit cards, personal loans, and medical bills are discharged in bankruptcy. Your attorney should have told you if you had any nondischargeable debt at the time you filed bankruptcy.
If you filed bankruptcy and were granted a discharge, and debt collectors keep calling you, they may be violating the discharge injunction, and you may be able to recover damages against them. If debt collectors willfully continue to contact you knowing the debt has been discharged, the bankruptcy court may find them in contempt of the discharge order. Never give out personal information over the telephone, and never wire money to a creditor unless you are absolutely sure who the person is and the debt to which the payment relates.
If you need a bankruptcy attorney in Los Angeles and Long Beach, California, contact us today!