David's Bankruptcy Discharge Violation Ends in Extra Money in his Pocket
Dec 20, 2013OUTCOME: David’s illegally garnished funds were returned to him, the collector signed a Satisfaction of Judgment. David also got a little extra money in his pocket and all attorney’s fees and costs paid for by the debt collector.
David called Castle Law Office regarding a garnishment on his check from a collection law firm hired by a creditor that was listed in his bankruptcy, but how could this be? A consumer’s check cannot be ... garnished for a debt that was discharged through bankruptcy, right? Correct! David received his discharge almost a full year before this garnishment was put in place, so his creditor and the collection law firm they hired had both definitely received notification of the bankruptcy discharge. David made the right decision of reconnecting with Castle Law. Often, your creditors and debt collectors may not follow all the rules they are supposed to once you receive a discharge. They have to accept the fact that you’ve received a discharge, and should not try to collect any wiped out debt. If a creditor tries to contact you about such debts, this is a “discharge violation,” and this may give you a reason to go after that creditor! Sadly, many people just pay the debt to get the creditors off their back instead of fighting with credit report agencies or creditors about fixing the problem. How the situation is handled depends on who specifically is coming after you. If your original creditor tries to come after you after you receive a discharge from bankruptcy, there are steps to take care of this within the bankruptcy court. However, if it is a debt collector or collection law firm, we can help you sue them for violating your rights under federal law. We helped David go after the collection law firm that was garnishing his wages on behalf of a creditor of a discharged debt. We were able to get the David’s garnished funds released back to him, got the debt collector to sign a Satisfaction of Judgment to be filed in state court so this would never happen again, as well as getting some extra money in damages for the stress David experienced by losing some of his paycheck to an illegal garnishment. Finally, as in all cases like this, the collection firm had to pay all of our attorney fees and costs to represent David so it cost absolutely nothing for him to fight back! We are happy we were able to continue to help David even after his bankruptcy was discharged. If you think you have been mistreated by one of your debt collectors or have a creditor violating the terms of your bankruptcy discharge, click here for more information on how we can help you turn the tables on them for violating your rights under federal law.
