Legal Question in Bankruptcy in California
being harassed by creditor after bankruptcy discharge
My husband and I filed a chapter 7 in October of 2005. It was discharged as of Dec. 2005. I am not getting letter and calls from a collection agency on a debt that was included in the bankruptcy. He stated that his client filed something (I can't remember what he called it) with the courts allowing them to remove their debt from my bankruptcy. He is threatening us with a judgement and wage garnishment. Can they do that? (it is not a federal debt. It's a car loan. Car was voluntarily reposessed. I owed a balance on the loan amount.)
2 Answers from Attorneys
Re: being harassed by creditor after bankruptcy discharge
As Mr. Cohen correctly noted, the creditor can't do anything other than repossess the vehicle. Your personal obligiation of the note would be discharged and you would not be liable for any deficiency balance. Unless the creditor filed an adversary proceeding to object to you receiving a discharge, I can't think of any scenario where are you would be responsible for anything.
Violating a discharge order can give rise to a claim for damages and subject the collectio to fines an penalties. You should consult a local bankruptcy attorney to determine what remedies you have based on the severity of the violation.
Re: being harassed by creditor after bankruptcy discharge
If the car loan were included in the BK, then the only thing they could do is repossess the car after the BK or seek leave of court to pursue the car before the BK had ended. Please feel free to provide me with the details of your BK and this creditor's demands by private e-mail. Improper collection efforts might violate federal law.
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