On behalf of Law Offices of Mark M. Kratter, LLC on April 03, 2012
After declaring bankruptcy, a Connecticut resident may be able to file a debtor's discharge. A debtor's discharge is a legal maneuver that is designed to prohibit creditors from contacting the debtor, such as through phone calls or by mail. Yet even after filing for bankruptcy and a discharge, a person may still find themselves continuously harassed by the creditor.
When that happens, the creditor is most likely acting illegally under the provisions of the Fair Debt Collection Practices Act. After a discharge is filed, there is a legally-binding injunction in place that prevents the creditor from continuing or commencing a collection action. Breaching that injunction may make them civilly liable to the debtor.
In a recent, well-documented case, Bank of America called one person 38 times after he filed for bankruptcy protection. By doing so, though, the bank was found to have acted wrongfully and was ordered to compensate the debtor for the harm they caused. The U.S. bankruptcy judge who was presiding over the matter ordered the bank to pay the debtor's attorney's fees of $12,500, along with damages for emotional distress.
Bank of America has found itself in hot water before over similar matters. In some cases, the bank sent information about the debtor to collection agencies even after a debtor's discharge had been filed. In another case, Bank of America even sold the rights to one debtor's account even though the debt had been settled.
A debtor's discharge is one of the cornerstones of bankruptcy: It is part of the process of allowing a person to have a fresh start in life without being overwhelmed a flood of calls from creditors. Those who are working through bankruptcy should be allowed to focus on returning to financial health, rather than dealing with unwarranted harassment from their creditors. After filing for bankruptcy, Connecticut residents should take the time to review their legal rights lest their creditors engage in unscrupulous practices.
Source: The Huffington Post, "BofA Allegedly Called Debtor 38 Times After He Filed For Bankruptcy," Alexander Eichler, March 30, 2012
