What should a person do if a creditor attempts to collect a debt that was discharged in the bankruptcy?
When a discharge is granted, the Court enters an order prohibiting the creditors from later attempting to collect from the debtor any debt that was discharged in the Chapter 13 case. If a creditor violates this Court order, the creditor may be held in contempt of court and fined; and may be liable to the debtor for damages. If a creditor later attempts to collect a discharged debt, the debtor should give the creditor a copy of the Order of Discharge and inform the creditor that the debt has been discharged under Chapter 13. If the creditor persists, the debtor should contact the debtor’s attorney. If the creditor files a lawsuit against the debtor, it is important not to ignore the matter, because even though any judgment entered against the debtor on a discharged debt may later be determined to be void, such a determination may require the services of an attorney, which could be costly to the you.
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