From time to time I will get a call from a former client who tells me that one of the creditors that was listed on their bankruptcy petition has been contacting them, trying to collect the debt. They are frustrated and anxious, worried that something has gone wrong and that they are still liable for the debt. They want to know what to do.
Once the court enters a discharge order in a bankruptcy case, two things happen. First, the discharge order releases the person who filed bankruptcy from any legal liability for their dischargeable debts (remember, some debts won’t go away when you file bankruptcy; you can read more here and here). Second, the “discharge injunction” is put in place. The discharge injunction prohibits a creditor from trying to collect a debt that has been eliminated by bankruptcy.
If a creditor violates the discharge injunction, it can be held in contempt and be forced to pay penalties and attorney fees. What you should know, however, is that a court is unlikely to hold a creditor in contempt for one or even a few phone calls or letters.
If a creditor contacts you about a debt after you have gotten your discharge, you should tell them that you filed bankruptcy. Give them your case number and the date you got your discharge. That should be enough to stop the phone calls. If it continues, you should talk to your lawyer about asking them to stop.
If you have questions about your rights when you file bankruptcy, we hope you’ll come in for a free, no-obligation consultation with an experienced Colorado bankruptcy lawyer. You can call 303.331.3403 to schedule an appointment or use our online scheduling system.