Consumer Law

Received Your Bankruptcy Discharge But Still Being Harassed About Discharged Debts? Must You Re-Open The Case?

By M. Stan Herring

Many Alabama consumers have made the hard decision of filing bankruptcy and then after going through it expect to be given the "fresh start" promised by federal law only to find that debt buyers and collection agencies are waiting for them "on the other side" of the discharge order. There are several ways to deal with these scoundrels - sue them in federal court under state law and the Fair Debt Collection Practices Act - but another way is to sue for violating the discharge order. This is, in effect, a request that the Bankruptcy Judge hold the violator in contempt for thumbing his nose at the federal discharge order.

The question comes up - do you have to re-open the bankruptcy to go this route? Read this post by Jay Fleischman and this follow up post that contains a statement from Texas attorney Chuck Newton. It may not be a requirement to re-open but that is what is typically done. Perhaps it is unnecessary.

Regardless of whether you should re-open, or you sue in federal district court, do contact us or a consumer or bankruptcy attorney to understand your rights so that you truly can get that fresh start that you are entitled to under the law.

Full post as published by Alabama Consumer Blog on October 08, 2008 (boomark / email).