QUESTION
What should be my legal step if a creditor whose account was discharged under bankruptcy come after me with a bank levy?
Asked on Dec 26th, 2013 on Bankruptcy - California
More details to this question:
Can a creditor whose account was discharged under bankruptcy come after me with a bank levy to get their money that was owed to them?
13 ANSWERS
Complex Litigation Attorney serving Costa Mesa, CA
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Thomas Vogele & Associates, APC
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In a nutshell, the answer is no. Was the creditor listed on your schedules and creditor matrix? If so and the debt was for the period before your bankruptcy was filed, you should notify your bank and the creditor and supply both with a copy of your discharge and a demand that the levy be withdrawn.
Answered on Dec 30th, 2013 at 6:52 AM
Debt Settlement Attorney serving Chicago, IL
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Law Offices of Daniel J. Winter
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Generally not. You should bring all of your paperwork to a bankruptcy attorney to review the facts.
Answered on Dec 27th, 2013 at 5:30 PM
Absent some unusual circumstance, if a creditor does this you can seek a violation of bankruptcy discharge and obtain money damages, including legal fees. However, if the type of debt was not eligible to be discharged, you may be out of luck. You will want this matter to be examined by the most experienced bankruptcy attorney you can find, as the documents are crucial.
Answered on Dec 27th, 2013 at 5:29 PM
No, that sounds like a violation of the discharge order and you could file a contempt proceeding against them.
Answered on Dec 27th, 2013 at 5:29 PM
If their debt was discharged in bankruptcy they cannot pursue you post-bankruptcy. Check with your bankruptcy attorney to verify that the debt in question was discharged.
Answered on Dec 27th, 2013 at 12:42 PM
No, the discharge is a permanent federal court order that forbids collection activity on discharged debts forever.
Answered on Dec 27th, 2013 at 12:37 PM
Consumer Bankruptcy Attorney serving Los Angeles, CA
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Orantes Law Firm
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No. Trying to collect a debt that was discharged in a bankruptcy violates the discharge injunction and can be punished by the Court with an award of all actual damages plus attorneys' fees and costs and punitive damages.
Answered on Dec 27th, 2013 at 11:50 AM
bankruptcy Attorney serving Paul, ID
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Paul N. J. Ross Law, PLLC
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No unless they were a nondischargeable debt. Visit with your attorney regarding potential contempt and sanctions against the creditor.
Answered on Dec 27th, 2013 at 11:48 AM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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No, that should not be possible. I need the details.
Answered on Dec 27th, 2013 at 11:43 AM
Consumer Bankruptcy Attorney serving Worcester, MA
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Law Offices of James Wingfield
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An unsecured creditor that whose debts have been discharged cannot legally use any methods to recover funds from you for pre-bankruptcy petition debts. If the creditor was *secured* in some circumstances the creditor *may* be able to act to enforce its lien after the bankruptcy case is closed, or with proper relief from the automatic stay during the bankruptcy. Timing is quite important in this analysis. If the situation you describe involves a creditor who, after the bankruptcy discharge has initiated a lawsuit to recover funds, then the lawsuit and any fruits of the suit such as a judicial lien or judgment are all a violation of the discharge and accordingly are inappropriate and illegal. Further, acting to enforce the lien is inappropriate and illegal. There are real remedies for these sort of violations of the discharge, including sanctions from the bankruptcy court against the creditor, and damages under the Massachusetts Consumer Protection Act and the Federal Fair Debt Collection Practices Act. You should consult with your bankruptcy attorney or another attorney qualified to handle bankruptcy issues.
Answered on Dec 27th, 2013 at 10:25 AM
Deborah F. Bowinski
If the debt was truly discharged they cannot collect after you file for bankruptcy. There are some debts that are not dischargeable, though. You should consult with an attorney to see what recourse you may have.
Answered on Dec 27th, 2013 at 9:56 AM
Bankruptcy Attorney serving Walnut Creek, CA
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Alan E. Ramos Law Offices
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The short answer is NO. This assumes, however, that the creditor received notice (in most cases, the action can be reversed) and that the creditor did not prevail in a non-dischargeability action. If the debt was discharged, the attempt to collect the debt is a violation of the discharge in junction. You should contact your attorney immediately.
Answered on Dec 27th, 2013 at 9:46 AM
No. That would not be proper. Debts that have been discharged in bankruptcy cannot be collected later.
Answered on Dec 27th, 2013 at 9:46 AM