Although it isn’t common, some creditors will insist that you owe a discharged debt. Faced with a creditor who insists repeatedly that even though you’ve filed bankruptcy you still owe them money, you might cave in and agree to pay. Don’t do it!
If a creditor was listed on your bankruptcy, that debt is discharged unless it fall into one of a few categories of non-dischargeable debts. These include student loans, most taxes, and domestic support obligations such as alimony, child support and property settlement agreements. These are the “Big Three” debts that are not discharged and where the creditor need take no further action. Other debts, such as a fraudulently incurred debt (you lied about your financial situation); intentionally harmed another person or his property; or caused injury while driving under the influence of drugs or alcohol might be non-dischargeable but the creditor has to file a lawsuit within the bankruptcy to have the judge determine whether the debt is non-dischargable. There are a few other categories of non-dischargeable debt, but they are rare.
Unless the debt the creditor claims you owe is one of these types, your bankruptcy covers it if it was listed. Even if it wasn’t listed, if your case is a “no asset” case, meaning the trustee didn’t sell or take any of your property and make a distribution to your creditors, the debt is discharged even if you didn’t list it.
When a creditor calls and says that you owe a debt that you listed in your bankruptcy. the odds are the creditor is violating the discharge stay, which prohibits a creditor from trying to collect a discharged obligation. You have remedies, such as reopening your case to have the court sanction the creditor. Don’t take it lying down; talk to your attorney if you keep getting calls from creditors after your bankruptcy.
If you would like more information or to talk to an attorney, call us at (801) 413-3708 or click here.