Are debt collectors legally able to pursue a discharged debt?

The personal bankruptcy process is complex. People spend months, if not years, trying to regain control over their finances. They may have to liquidate some of their property or maintain a strict household budget as they complete a multi-year repayment plan.

The biggest benefit of bankruptcy in many cases is the discharge of eligible debts at the end of the process. Credit card balances, medical debts and other unsecured financial obligations are often eligible for discharge in a personal bankruptcy filing.

Those who have completed bankruptcy often expect to move on with their lives without future financial challenges. Unfortunately, companies that collect on debts can sometimes be overly aggressive. Some companies even buy questionable debt information from creditors and then engage in aggressive collection efforts against individuals.

Can a collection company or an original creditor lawfully continue attempting to collect on a debt that someone has discharged during bankruptcy proceedings?

Discharge eliminates collection efforts

In theory, the filer who pursued bankruptcy always has the option of repaying their discharged debts. The debt doesn’t disappear just because they included it in their successful bankruptcy filing. They can reach out to individuals and businesses if they have a sudden financial windfall to make good on the debts included in their bankruptcy.

However, there is no legal need for them to do so. The obligation to repay a debt disappears after the discharge granted by the courts. The ability to collect on the debt by calling an individual, sending them letters or filing a lawsuit also ends with the discharge of the debt in bankruptcy proceedings.

If a filer receives collection phone calls or letters, proof of their discharge should be enough to stop those companies from continuing to harass them. Sadly, companies often try to take advantage of those who don’t fully understand the law. They may scoff at those who claim to have discharged the debt and continue contacting them in the hopes of wearing them down and convincing them to pay.

Those facing illegal and inappropriate debt collection efforts may have grounds to take legal action. People who have discharged debts in bankruptcy shouldn’t face ongoing collection efforts related to those debts. Holding companies accountable for illegal attempts to collect on debts can potentially result in financial compensation and an end to abusive debt collection efforts.

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