In today’s uncertain economy many people are turning to filing bankruptcy to alleviate overwhelming debt. With skyrocketing gas prices, inflation, decreasing home values, and unemployment at all time highs, it is no wonder that bankruptcy has become such a popular choice for those individuals that are in financial distress. As a matter of fact, filing bankruptcy just might be the smartest decision for an individual who is struggling with massive debt to gain a fresh financial start. So is it then possible for someone who has filed bankruptcy and received their bankruptcy discharge to still be hassled by their former creditors?
The answer is that it is possible to still be hounded by former creditors that were listed and subsequently discharged in the bankruptcy. This can come as a surprise and a shock to an individual who has successfully gone through the bankruptcy process. The next question then becomes, How is this possible when the debt was wiped out in the bankruptcy? First of all don’t get upset with the bankruptcy attorney since it is not their fault.
Many times a creditor will sell the delinquent debt to another collection company for pennies on the dollar of the amount owed. This can even happen where the account changes hands to several different collection companies. Sometimes the collection company does not know that the debt was discharged in a bankruptcy. In other instances the creditor or collection agency is aware of the bankruptcy and just does not care, knowingly ignoring the US Bankruptcy Court that discharged the debt. These aggressive collectors use all kinds of scare tactics and threats to try to squeeze money out of the debtor. Whatever the situation may be, this practice is illegal and should be reported to the debtor’s bankruptcy attorney immediately. A debt that was discharged in a bankruptcy operates as a federal court injunction that prohibits the collection of any and all debts that the debtor owed prior to the bankruptcy. The creditor or collection agency can receive harsh penalties and fines for violating the US Bankruptcy laws. This is not something to stress out over, just turn the matter over to the bankruptcy attorney that handled the case and let them legally pursue the creditor in violation. The debtor can then get on with their new financial beginning.