info@carolinalaw.com
info@carolinalaw.com
A bankruptcy discharge releases a borrower from liability for debts included in the bankruptcy. It permanently prevents creditors from attempting to collect any portion of the discharged debts, including through collection letters, phone calls, lawsuits, or any other communications with the debtor. Although the bankruptcy discharge releases consumers from personal liability for debts, many collection agencies, banks, finance companies, and other creditors continue to try to collect those amounts even though the debt is extinguished. The bankruptcy discharge constitutes a permanent statutory injunction prohibiting creditors from taking any action—including filing a lawsuit—designed to collect a discharged debt. Our experienced bankruptcy discharge violation lawyers are here to help those facing this unfair debt collection practice.
Filing a bankruptcy petition is an emotional experience for consumers. You didn’t take on debt with the expectation that you wouldn’t be able to pay it back. Many people in debt feel a sense of embarrassment associated with utilizing the protections provided by the United States Bankruptcy Code. The one saving grace linked to a bankruptcy filing is that, once it’s over, you will have a “fresh start.” You can move forward with your life without dealing with bill collectors, collection agencies, and creditors harassing you with phone calls, letters, text messages, and emails about making payments that you simply can’t afford.
Unfortunately, many collection agencies and creditors choose to willfully ignore the existence of bankruptcy discharges, denying borrowers the fresh start that our laws provide. These are a few of the most common businesses which commit bankruptcy discharge violations. They may continue to send statements demanding payment for debts incurred after bankruptcy discharge or refer the debts to collection agencies without mentioning the bankruptcy.
Many credit furnishers have intentionally failed to correct reports to consumer reporting agencies to pressure debtors like yourself into paying post-bankruptcy discharge debt. Debt collectors will buy debt from other parties and attempt to collect it even after a bankruptcy has been filed, claiming ignorance about bankruptcy or insisting that it’s not their job to know about your bankruptcy.
If you receive a collection letter, billing statement, phone call, email, or text notifying you of a due debt after your bankruptcy discharge, it violates your rights against unfair debt under the Fair Debt Collection Practices Act (FDCPA). The FDCPA protects consumers from abusive debt collection practices and prohibits collectors from contacting you about debts that have been discharged in bankruptcy. Receiving further bills creates unnecessary stress for you and your family, and failing to rectify your credit situation can have even graver consequences—like hindering your ability to secure a future mortgage or car loan. Our firm has successfully recovered hundreds of thousands of dollars for clients who, after their bankruptcy discharge, faced improper debt collection and credit reporting issues. As a former debtor, you can also recover attorney fees for these violations.
North Carolina assesses violations of the state’s unfair debt collection laws on a “per violation” basis, meaning that every letter, call, email, or text is a separate violation subject to penalties under state law. You may claim between $500 and $4000 for each violation. In addition to the risks associated with inaccurate reporting, it’s important to understand the implications of such actions under the federal Fair Credit Reporting Act (FCRA). When collectors or other companies fail to report a discharge accurately, it can adversely affect an individual’s credit score and lead to potential legal repercussions for the reporting entity. The FCRA mandates that all consumer reporting agencies and companies ensure that their reports are complete and accurate. You may pursue legal action for damages if they violate this regulation by providing false information about a bankruptcy discharge.
If you have been contacted by a debt collector about post-bankruptcy discharge debt, even if it was only once, Maginnis Howard may be able to assist. Be sure to save any communications and keep a record of any phone calls, text messages, emails, letters, or billing statements received. If we take the case, we always do so on a contingency basis, meaning that no fees are owed unless you recover funds. We serve clients across the Carolinas from our offices in Charlotte, Fayetteville, and Raleigh.
