QUESTION
What do I do at this point if the creditors continue to harass and are my rights being violated?
Asked on Aug 24th, 2015 on Bankruptcy - Michigan
More details to this question:
My husband filed chapter 7 bankruptcy. It was discharged on 04/27/15 and was closed on 07/06/15. We had one account that we were going to reaffirm, however the judge ruled against the reaffirmation on the account which for a title loan against my 2 vehicles, stating that paying this account would cause undue duress and the interest rate charged was too high. We filed the proper forms to set aside this account as noted by the judge was to set aside this account and add to the bankruptcy. However, the creditor continued to pursue and harass this account that was added to the bankruptcy.
5 ANSWERS
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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If it's an auto loan, the creditor is entitled to repo the cars but they are not allowed to harass you for payment.
Answered on Sep 09th, 2015 at 8:15 AM
The creditor should leave you alone at this stage and not contact you.
Answered on Aug 31st, 2015 at 6:14 PM
A strongly worded letter from your husband?s bankruptcy attorney about pursuing a discharge violation may resolve this issue. If your husband was not represented in his Chapter 7, finding an attorney to file suit for a discharge violation is going to be a problem as many attorneys will not work on a case where the debtor filed pro se.
Answered on Aug 31st, 2015 at 12:59 PM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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Of course this creditor is likely violating the Discharge of 11 USC sec. 524. There is a chance that the creditor is not doing so knowingly since the creditor presumably has a signed reaff. agreement in hand, and may not be aware that the Court did not approve the reaffirmation. So...if you had a lawyer in the case, discuss with him or her the desirability of filing a Motion for Contempt against this creditor. If you had no lawyer, it would likely be a good idea to retain one. But I do think that a single warning letter to the creditor, informing it of all the relevant facts and written in a polite but firm manner, might stop the harassment. And the fact that you did give a warning will look better in your motion papers if you must go for contempt.
Answered on Aug 31st, 2015 at 10:02 AM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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If the creditor is seeking to repossess the cars, that is its right, if it seeking to collect the deficiency after the cars are repossessed and sold it is wrong. See your bankruptcy attorney.
Answered on Aug 31st, 2015 at 8:25 AM