What can a debtor do if a creditor attempts to collect a discharged debt after the case is concluded?
Once a debt has been discharged through bankruptcy, creditors are prohibited from taking collections action. If a creditor attempts to enforce a debt properly discharged through bankruptcy, the debtor’s attorney may petition the court to re-open the case. The bankruptcy court will often do so to ensure that the discharge is not violated. The discharge constitutes a permanent statutory injunction prohibiting creditors from taking any action, including the filing of a collections lawsuit. A creditor who attempts to enforce a discharged debt can be held in contempt of court and will be punished with fines and sanctions.
