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What do I do if a creditor that I filed bankruptcy on took money out of my account?

Aurora, CO |

My Bankruptcy was discharged in 2009. Today when i checked my bank account, a creditor has taken the money owed from 4 years ago out of my bank. It has bounced my checking account and has incurred charges. What am supposed to do?

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Attorney answers 5


While there is not enough information to say for sure, this sounds like a violation of the bankruptcy discharge. There are a couple of limited circumstances in which it might not be. Contact the attorney who represented you in the bankruptcy, or consider retaining an attorney if you did not have one.

AvvodisWith what's at stake, consulting with an experienced bankruptcy attorney licensed to practice in your state may be a good idea.

If you want to know more about the meaning of certain key words used in bankruptcy, see the federal courts' web site for a glossary of bankruptcy terms:

My law firm is a federally designated debt relief agency and helps people in Colorado file for bankruptcy relief under chapters 7 and 13 of the Bankruptcy Code.


It would sort of help to know who the creditor was. If it was your bank, they may be entitled to do this under the contract provisions known as "set off." If it was for a debt that wasn't eligible to be discharged, this action would be legitimate. The fact you failed to provide any details kind of makes me wonder. Hope this perspective helps!


As stated, not enough information to go on, but contact the attorney that represented you in BK or schedule a consult with a different attorney to review the situation. Assuming the debt was discharged in your BK, then the creditor violated the discharge injunction and you can seek damages and get your money back. If the debt was not discharged for some reason, then what they did was probably legal assuming they had a judgment or some other legal basis for a bank account levy.


The first thing you should do is to discuss the issue with the attorney who handled your bankruptcy. It would also be helpful to contact the bank to get a copy of the garnishment.

If the money was taken for taxes or student loans, then it is likely that these debts were not discharged in your bankruptcy and the seizure is proper. Also, if the debt was incurred after you filed your bankruptcy it would not be included. If the debt was discharged and the creditor properly listed in your bankruptcy, you can probably sort out the matter with a couple of letters from your lawyer.

You can reach Harkess & Salter LLC at (303) 531-5380 or Stephen Harkess is an attorney licensed in the state and federal courts of Colorado. This answer is for general information only and does not create an attorney client relationship between Stephen Harkess or Harkess & Salter LLC and any person. You should schedule a consultation with an attorney to discuss the specifics of your legal issues.


Please consult with your attorney and verify that the creditor in question was listed on the notice of discharge. It seems that they are in violation of the discharge. If so, you can recoup the $ levied and may have a cause of action against them.