Debt Collector Contacting You About Discharged Debt? Here’s What to Do
Debt collectors cannot legally contact you about debts discharged in bankruptcy. If they continue calling after you explain the situation, they're violating federal law. Document everything, notify your bankruptcy attorney, and respond to any lawsuits to protect your rights.
Answer the LawsuitBankruptcy gives you a fresh start. Your debts disappear, and you can rebuild your financial life.
But sometimes debt collectors don’t get the memo. They’ll call about debts already discharged in bankruptcy. You need to know your rights when this happens.
Being Sued Over a Discharged Debt?
Don't ignore the lawsuit. Respond with a proper Answer that cites your bankruptcy discharge. Missing the deadline gives collectors a default judgment even though you don't owe the debt.
Respond NowCollection agencies may not know about your bankruptcy. Communication between creditors and collectors sometimes breaks down. Your original creditor may have sold the debt before updating their records.
The collector continues their usual process. They have no idea a court already eliminated the debt.
Why Collectors Contact You About Discharged Debts
Most debt collectors pursue discharged debts because they lack current information. Your bankruptcy may be too recent to appear in their system.
They’re simply contacting everyone they think owes money. Nothing malicious is happening yet.
When a collector calls, explain your situation clearly. Tell them you declared bankruptcy and a court discharged your debts.
The agent may ask for your bankruptcy case number and discharge date. Provide these details if you have them handy. Otherwise, refer them to your bankruptcy attorney.
Document everything. Keep every letter and note every phone call. Your records become crucial if problems continue.
When Collectors Won’t Stop Calling
You’ve explained your bankruptcy. You’ve provided your case information. But the calls keep coming.
The collector is now breaking federal law. The Bankruptcy Protection Act forbids creditors from contacting you about discharged debts. No letters, no emails, no phone calls.
Collectors also cannot take legal action against discharged debts. They can’t garnish your wages or freeze your bank account. They can’t file a lawsuit against you.
Violating these rules exposes them to fines and penalties. You can even sue them for harassment.
Report persistent collectors to your bankruptcy attorney. Your lawyer can send a cease and desist letter. The letter should stop all future contact.
If it doesn’t, your attorney can threaten a lawsuit. Most collectors back off immediately when facing legal consequences.
Keep Detailed Records of Collection Attempts
Documentation protects you. Create a file for all collection communications after bankruptcy.
Save every letter you receive. Write down dates, times, and caller names for phone calls. Record what each collector said.
Most collection activity should stop after you declare bankruptcy. You might hear from a few stragglers. But contact should end once you inform them of the discharge.
Give your attorney a list of persistent creditors. Your lawyer can contact them directly with bankruptcy details. An attorney’s call usually ends the harassment.
Your records prove violations if you need to take legal action. Courts take these violations seriously.
When Collectors Claim You Still Owe Discharged Debts
Some collectors use aggressive tactics. They’ll claim you owe money even after bankruptcy discharged the debt.
Collectors know many people don’t understand bankruptcy law. They count on your confusion and fear.
These claims are both wrong and illegal. Ask for the collector’s license number immediately. File complaints with the Better Business Bureau and Consumer Financial Protection Bureau.
Notify your bankruptcy attorney right away. Your lawyer can send a cease and desist letter. The letter formally demands the collector stop all contact.
Your attorney can also threaten legal action. Continued harassment after a cease and desist letter strengthens your case.
If you’re being sued over a discharged debt, our partner Solo can help you respond with a proper legal Answer.
Debts You Forgot to Include in Chapter 7
You declared Chapter 7 bankruptcy but forgot to list a debt. Do you still owe it?
In most cases, no. Chapter 7 bankruptcy discharges all eligible debts, even unlisted ones.
However, asset cases work differently. In an asset case, a trustee sells your property and distributes proceeds to creditors. You may still owe unlisted debts in these situations.
Most Chapter 7 bankruptcies are no-asset cases. You own no valuable property for the trustee to distribute. The bankruptcy discharges all eligible debts.
Forgot to list a debt? The creditor can’t collect it. The court discharged it with all your other debts.
Debts You Forgot to Include in Chapter 13
Chapter 13 bankruptcy follows different rules. If you forgot to include a debt, you still owe it.
Chapter 7 eliminates most debts immediately. Chapter 13 creates a repayment plan instead.
You make monthly payments for three to five years. After completing the plan, the court discharges remaining balances.
Unlisted debts aren’t part of your repayment agreement. Creditors never agreed to accept reduced payments. You must still repay these debts in full.
You’ll need to contact the creditor directly. Arrange a payment plan or pay the full balance.
Some Debts Cannot Be Discharged
Certain debts survive bankruptcy. Courts rarely eliminate these obligations:
- Court fines and penalties from personal injury or criminal cases
- Alimony and child support payments
- Debts from fraud or embezzlement
- Tax debts less than three years old
- Student loans
Student loans require special handling. You can sometimes discharge them through an adversary proceeding.
You must prove undue financial hardship. Courts use strict standards for this determination.
The process involves filing additional legal claims beyond your bankruptcy petition. You’ll need strong evidence of ongoing hardship.
Collection calls about these debts are valid. You still owe them. Collectors can legally pursue you until you pay or arrange a repayment plan.
How to Include All Debts in Your Bankruptcy
Careful preparation prevents problems later. Take time creating your debt list.
Get copies of all three credit reports. List every creditor and current obligation. Include account numbers and balance amounts.
Consider debts that won’t appear on credit reports. Payday loans often don’t report to credit bureaus. Medical debts sometimes take months to appear.
Think about personal loans from friends or family. Remember utility bills and old phone contracts.
Unlisted debts in Chapter 7 usually don’t hurt you. But Chapter 13 makes you responsible for every unlisted obligation.
Accuracy matters in legal proceedings. Double-check your bankruptcy petition before filing.
Responding to Lawsuits Over Discharged Debts
A debt collector sued you over a discharged debt. You must respond to avoid an automatic loss.
File an Answer denying all claims against you. Assert your affirmative defenses clearly.
Your strongest defense is the debt discharge. State that bankruptcy eliminated the debt. Provide your case number and discharge date.
Include documentation if possible. Attach a copy of your discharge order.
Your Answer must use proper legal format. Include all required sections and language. File it within your state’s deadline.
Missing the deadline gives the collector a default judgment. They can garnish wages and freeze accounts even though the debt was discharged.