After a person files bankruptcy, some creditors still attempt to collect the debt or sell the debt to a collection agency. Such actions are serious violations of federal law. The whole purpose of the bankruptcy is to relieve the borrower of his/her legal obligation to repay the debt. If a creditor disregards the bankruptcy and the legal protections it affords to the borrower, they will be issued penalties and will be ordered to reimburse the borrower for any money collected after filing the bankruptcy as well as other fees and penalties.
It is important that you know your rights within bankruptcy. Some creditors are very aggressive in their pursuit of money and will try to collect from you by indicating they are exempt from the bankruptcy. This type of collection activity is a clear violation of the bankruptcy code. You should not pay this creditor, but instead you should get their information and call your attorney. If you don’t have an attorney, you should get one immediately and stop these illegal collection practices.
On occasion, a doctor or other creditor will refuse future service unless you pay the old debt that was discharged in the bankruptcy. Whether the doctor is aware of it or not, this too is an illegal collection practice. No creditor, including a doctor, may deny future services until a bankruptcy debt is repaid.
As mentioned in the first part of this series, a doctor can require payment of future services be made prior to the actual service, but they cannot require a patient to pay a bankrupt debt in order to get continued treatment. You should not allow a creditor to belittle or embarrass you on account of your bankruptcy. The purpose of bankruptcy is to provide you with a fresh start, not embarrassment.
For your FREE consultation today, call Benjamin Skinner, experienced Arizona bankruptcy attorney! (480) 648-8975.