Collection and Bankruptcy

[tassie]

My husband filed bankruptcy last year. I did not file with him. What happens when a creditor is still trying to collect for a debt he filed bankruptcy on? I sent them a letter CMRRR 3 weeks ago telling them the account was included in the bankruptcy. We get another collection letter today. How should we proceed and what is the fine for them? Thank you.

[Robert Nashville/Savannah]

If your husband was the only legal debtor and he included the account in his bankruptcy then they are breaking Fed Bankruptcy Law by continuing to try to collect...he needs to call his Bankruptcy Attorney and/or notify the court.

If, however, you were joint on the account(s) then they can come after you for the debt.

[LadynRed]

I would try a very stern letter first. Collection on a discharged debt is a violation of the permanent injunction of his discharge and, as Robert stated, is breaking Federal BK law.

You write them a letter. You remind them of his bankrutpcy case number, filing date, discharge date and the court it was filed in. Then you remind them of the law:

§ 524. Effect of discharge

(a) A discharge in a case under this title— (1) voids any judgment at any time obtained, to the extent that such judgment is a determination of the personal liability of the debtor with respect to any debt discharged under section 727, 944, 1141, 1228, or 1328 of this title, whether or not discharge of such debt is waived;

(2) operates as an injunction against the commencement or continuation of an action, the employment of process, or an act, to collect, recover or offset any such debt as a personal liability of the debtor, whether or not discharge of such debt is waived; and

(3) operates as an injunction against the commencement or continuation of an action, the employment of process, or an act, to collect or recover from, or offset against, property of the debtor of the kind specified in section 541 (a)(2) of this title that is acquired after the commencement of the case, on account of any allowable community claim, except a community claim that is excepted from discharge under section 523, 1228 (a)(1), or 1328 (a)(1) [1] of this title, or that would be so excepted, determined in accordance with the provisions of sections 523 © and 523 (d) of this title, in a case concerning the debtor’s spouse commenced on the date of the filing of the petition in the case concerning the debtor, whether or not discharge of the debt based on such community claim is waived.

[tassie]

I really thought they could not try to collect after bankruptcy. He was the only one on the account, on any of the accounts he filed on. He had a lot more debt than I did so that is why he was the one to file. I will send the letter and see what happens with them. Thank you for the information.

Also, if we told the credit bureaus to show his charge offs as included in bankruptcy, do they have to do that? Experian said they updated the account and it remains. It shows charge off only. So this tells me they did not even check because the same bank is reporting discharged in bankruptcy on the other 2 reports.

[LadynRed]

Also, if we told the credit bureaus to show his charge offs as included in bankruptcy, do they have to do that?

They are REQUIRED to verify that info with the furnisher of the information. If they creditor or collection agency 'verifed' that the CO is correct, then you need to go after them, not the CRA. You can use the same letter as mentioned above, negative reporting on a discharged debt is a violation of your discharge and there is case law to support this.