Violation of the Discharge in Bankruptcy

The discharge in bankruptcy means that the debts arising prior to the filing of bankruptcy are forever forgiven. There are some exceptions to discharge (e.g. reaffirmed debts, certain tax debts, certain domestic support obligations, etc.). The discharge order by a bankruptcy court prevents a creditor from attempting to collect on a pre-petition debt. Creditors are not only barred from collecting on a discharged debt, they are also barred from attempting to collect on a discharged debt.

Sometimes, however, creditors don’t listen. This happens either when a creditor deliberately ignores the discharge order, or in the typical case of larger entities, a creditor may not have followed the correct procedures in halting collection actions. When a creditor insists on violating the discharge injunction, you can file a motion for sanctions with the bankruptcy court. The bankruptcy court judge may sanction the creditor by ordering it to pay for your attorney fees as well as punitive damages.

One instance can be found in the following case involving Bank of America:

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