Can Debt Collectors Collect Debts Which Have Been Discharged in Bankruptcy?
We are seeing a lot of debt collectors buy debts from creditors where the debts have been discharged in bankruptcy proceedings. Debt collectors buy these debts for pennies on the dollar because theyre worthless debts in the eyes of the law. Debt collectors cannot collect upon discharged debts unless you affirm (also known as reaffirm) the debt. If you have discharged a debt in bankruptcy proceedings, you are under no legal obligation to reaffirm the debt. Debtors sometimes decide to reaffirm debts because they want to continue a relationship with the creditor. For instance, lets say a debtor discharges a debt from DISH Network, and DISH cuts off his television service. When the debtor reapplies for TV service from DISH, DISH may require that he reaffirm his old debt with them. So long as the debt collector makes it very clear that the consumer is under no legal obligation to reaffirm the debt, this is permitted conduct. However, debt collectors often try to trick, coerce or harass cons
