Penalties for Creditors Attempting to Collect on Discharged Debt

Creditors attempting to collect on debt that has been wiped away by a bankruptcy discharge face legal consequences within and outside of bankruptcy court.  By law, a creditor is not allowed to collect on a debt that no longer exists legally.   If the creditor does, the debtor has options.   One is that he/she may file a motion with the court asking that the creditor be enjoined from collection activities. Additionally, the Fair Debt Collection Practices Act outlines clear remedies for debtors who find themselves in this predicament.   Remedies include injunctions, fines and sometimes even payment from the creditors.

You do not have to be a victim.  The federal government has laws that protect consumers from salacious debt collection practices. Consult the Fears | Nachawati Law Firm today to find out your rights.