What To Do About Debt Collection After Bankruptcy Discharge

A debt collector contacting you about a discharged debt? Stay calm. You have strong legal protections.

Tell the debt collector clearly that you filed bankruptcy. Give them your bankruptcy case number and discharge date. Demand they stop all collection efforts immediately.

Sometimes one call is an honest mistake. But if the debt collector keeps contacting you after you inform them, they’re breaking the law. Many people in this situation choose to talk to a bankruptcy attorney about suing the debt collector.

Check your credit report to make sure discharged debts show a zero balance. Mistakes on your credit report could mean the creditor is improperly reporting your discharged debt. You can dispute these errors to protect your fresh start.

What To Do if a Collector Calls After Bankruptcy

Filed bankruptcy without an attorney? Here’s what to do if a debt collector calls after your bankruptcy discharge.

Step 1: Make Sure the Debt Collector Is Legitimate

Before you give out information, identify the creditor or debt collector. Make sure it’s not a scam call.

Get the name of the person you’re talking to. Write down the company name, address, and phone number. Ask for the account number and alleged amount owed. Record the date and time of the call.

Step 2: Tell the Debt Collector About Your Bankruptcy Discharge

If the debt collector seems legitimate, tell them you have a discharge order. Give them the discharge date and bankruptcy case number.

You can offer to send a copy of your discharge order. But you aren’t required to do this. Giving them your case number is enough.

Demand that they stop all collection efforts immediately. Remove your name from their contact list.

You don’t need to stay on the phone or explain anything further. Keep the conversation short and to the point.

Step 3: If the Debt Collector Won’t Stop, You May Have Legal Options

If a debt collector keeps contacting you after you tell them about your discharge, they’re breaking the law. You have the right to take action. Many people go back to bankruptcy court to stop the harassment.

The court can order the debt collector to pay for the harm they’ve caused. This could include:

• Money to cover attorney’s fees
• Compensation for stress or inconvenience (called damages)
• Fines or penalties for violating the discharge order

Many people work with a bankruptcy attorney to handle this. The good news? If the court finds the collector broke the rules, they pay your legal fees.

If you need help dealing with persistent debt collectors, you can speak with a bankruptcy attorney for free to discuss your options.

Don’t Forget To Check Your Credit Report

After your bankruptcy is discharged, check your credit reports. Make sure everything is being reported correctly.

Even though creditors are supposed to update your accounts, mistakes can still happen. This is especially true if your debt was sold to a collection agency.

Each debt that was discharged should show a $0 balance. It should be clearly marked as discharged in bankruptcy. If you signed a reaffirmation agreement, that should also be noted.

Here’s what to look for when reviewing your credit reports:

• Discharged debts showing a balance other than $0
• A secured debt showing the wrong balance
• Missing or incorrect reaffirmation details
• No mention that a debt was discharged in bankruptcy
• A “charge-off” status instead of “discharged in bankruptcy”
• Hard inquiries from debt collectors that shouldn’t be pulling your credit

You can get a free copy of your credit reports at AnnualCreditReport.com. If you find mistakes, you can file a dispute with the credit bureau to get them corrected.

Why Am I Being Contacted About a Discharged Debt?

When you get a bankruptcy discharge, the court sends a copy to every creditor you listed. The order tells them the debt is no longer collectible. But sometimes, things fall through the cracks.

In some cases, a debt collector might not know about the discharge. In other cases, they do know but hope you don’t push back. Either way, trying to collect on a discharged debt is illegal.

Keep your bankruptcy paperwork handy. Speak up if you get a collection call. Once you tell a debt collector that the debt was discharged, they’re required to stop. If they don’t, you may be able to take legal action.

What Debt Collectors Can and Can’t Do After Bankruptcy

After a bankruptcy discharge, debt collectors must leave you alone about discharged debt. That means no more phone calls, letters, emails, or lawsuits. If a debt was discharged, it’s gone.

But not all debt collection is off-limits. There are two main reasons a collector might still legally contact you:

1. The debt wasn’t discharged: Some types of debt don’t go away in bankruptcy. These include recent taxes, child support, or certain court fines. These are called non-dischargeable debts. Collectors can still contact you about those.
2. The debt was created after you filed your case: If you took on a new debt after your bankruptcy filing date, that debt wasn’t included. This is called post-petition debt. Collectors are still allowed to pursue those.

If you’re not sure whether a debt should have been discharged, take a look at your bankruptcy paperwork.

Is All Debt Collection Activity Prohibited After a Bankruptcy Discharge?

Most, but not all, debt collection activity is illegal following a successful bankruptcy discharge.

Debt collectors aren’t allowed to call you about any discharged debt. They can’t send you letters, contact you on social media, or talk to you in person. This includes medical bills, credit card debt, personal loans, or any other debts that were discharged.

No one can sue you, garnish your wages, or garnish your bank account for a discharged debt. The debt is gone.

Which Debts Get Wiped Out in Bankruptcy and Which Don’t?

Bankruptcy can erase many kinds of unsecured debt. These are debts that aren’t tied to any property. But some types of debt stick around even after a discharge.

Here’s a quick breakdown:

Debts that can usually be discharged:

• Credit cards
• Medical bills
• Payday loans or personal loans
• Old utility or phone bills
• Past-due rent (from a lease you no longer live in)
• Car loan or mortgage balances if you gave up the property

Debts that are usually not discharged:

• Child support or alimony
• Most student loans (unless you take extra legal steps and prove hardship)
• Court fines and restitution
• Recent income tax debt
• Debts from a DUI accident
• Secured debts like car loans or mortgages if you want to keep the property

If you reaffirmed a debt during bankruptcy, that debt won’t be discharged either. Reaffirming a debt means you agreed in writing with the lender to keep paying it.

How Do I Get a Bankruptcy Discharge?

To get a discharge through bankruptcy, you must have a bankruptcy case. To file bankruptcy, you have to meet certain requirements and file a bankruptcy petition.

Consumers usually file either Chapter 7 or Chapter 13 bankruptcy. You’ll want to look at your income, debts, and what assets or property you own to decide which is best.

In addition to filing a petition, you’ll have to fill out several bankruptcy forms. You’ll pay a filing fee, take two required courses, and meet with a bankruptcy trustee. Once you do all this and complete any required repayments, your discharge will be granted.

Not sure if you qualify for Chapter 7 or Chapter 13? You can speak with a bankruptcy attorney for free to find out which option is right for you.

What Is a Bankruptcy Discharge Order?

An order of discharge in bankruptcy officially ends your personal liability on certain debt. It also orders a permanent stop to collection actions.

In a Chapter 7 bankruptcy, the order is usually granted 60-90 days after the meeting of creditors. In a Chapter 13 bankruptcy filing, the order of discharge is granted after you complete monthly payments on your repayment plan.

What’s the Difference Between the Discharge Order and the Automatic Stay?

When you first file Chapter 7 or Chapter 13 bankruptcy, an automatic stay goes into place. The automatic stay immediately puts a stop to debt collection activity. This includes foreclosure, repossession, eviction, and wage garnishment.

The automatic stay remains in place during the bankruptcy process. It ends when the discharge order arrives. But at that point, you won’t need it anymore.