DEBT COLLECTORS AND CREDITORS ARE NOT PERMITTED TO ATTEMPT TO COLLECT A DEBT THAT WAS ELIMINATED IN BANKRUPTCY.

Has a debt collector or creditor tried to collect a debt that was eliminated in bankruptcy?

While debt that has been eliminated, or discharged, in bankruptcy is still technically owed to the creditor, and they are free to accept your voluntary payment of the debt, they are NOT allowed to attempt to collect on it in any way. Federal bankruptcy law prevents them from doing so. The Fair Debt Collection Practices Act (FDCPA) and Rosenthal Fair Debt Collection Practices Act (RFDCPA) also prohibit a creditor or debt collector from “misrepresenting the legal status of a debt”. This means that a collector cannot tell you that you must pay the debt, as you are no longer legally required to do so, therefore that would be a misrepresentation of the legal status of the debt.  Other violations of the law after a bankruptcy include:

• Threatening to sue you
• Indicating that they can garnish your wages
• Implying that your bank account can be levied or your property taken

Debt collectors and creditors cannot threaten to take any action that is not legal or intended, and in the case of a debt that has been discharged in bankruptcy, lawsuits, garnishments, levies, and repossessions are not lawful.

If a creditor or debt collector has tried to collect a debt that was eliminated in bankruptcy, please contact our office at 1-800-219-3577 for a free, no obligation case review.