- When you file for bankruptcy protection, your creditors must not violate the automatic stay, which prevents a creditor from attempting to collect a debt while the debtor is in bankruptcy. Only if the creditor gets prior court approval, are they allowed to attempt to collect the debt. The automatic stay occurs when the bankruptcy is filed.
- Creditors are not allowed to violate the discharge injunction. A bankruptcy discharge typically comes at the end of a case. The Discharge absolves a debtor of liability for those debts covered by the bankruptcy court’s discharge order.
The discharge injunction is serious. Creditors who violate it may be forced to compensate the debtor for attorneys’ fees, emotional distress as well as punitive damages. Creditors pursuing post-bankruptcy debt would do well to consult an attorney for advisement on what debts they can pursue. Debtors should consult with a bankruptcy attorney if they are unable to repay the debt and are being relentlessly pursued. When you know you cannot resolve your debt on your own, and the balance of that debt is high, it may be time to contact ConsumerLawAssist.com for an attorney who will meet you face to face. Know your options. Get protection.