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Common Questions About Creditor Harassment and Reporting After Bankruptcy

If you have to obtain a bankruptcy discharge after declaring either Chapter 7 or Chapter 13 bankruptcy, you are likely anxious to begin the process but are uncertain about how to proceed. While there are numerous areas in which questions arise, one of the most common types of questions that people who have to obtain bankruptcy discharge ask are about creditor harassment and credit reports. This article will provide some of the most commonly asked questions regarding these subjects. As always, while navigating the bankruptcy process, it can help significantly to rely on the assistance of a seasoned attorney who has helped others navigate the process. Question # 1: What if a Creditor Tries to Collect on a Discharged Debt? If a creditor contacts you after your debt has been discharged through bankruptcy, the best way to respond is to notify the creditor that the debt has been discharged. If the creditor contacts to you despite knowing the discharge has occurred, this is viewed as a serious violation of the Bankruptcy Code and likely violates the Fair Debt Collection Practices Act. As a result, a creditor can end up paying significant fines. Question # 2: What if You Forgot to [...]

2018-05-31T03:13:10+00:00Tags: , , |

Supreme Court Issues Decision on Debt Collectors

Debt collectors are known to use a variety of scare tactics to force individuals into paying a debt. A recent Supreme Court case, however, issued a decision on how to define the role of debt collectors. In the case of Midland Funding LLC v. Johnson, the Court held that a debt collector who files a claim that is barred by the statute of limitation will be considered to have engaged in deceptive, false, or misleading conduct and therefore will not be found to have violated the federal Fair Debt Collection Practices Act. The Case in Question The case in question is Midland Funding LLC v. Johnson, which arose in 2014 after Aleida Johnson filed a civil lawsuit against Midland Funding LLC on the basis that Midland had violated applicable law when it filed a proof of claim in Johnson’s bankruptcy case for a credit card debt whose state statute of limitations had already expired. The district court held that Midland’s conduct did not violate the law, but the Eleventh Circuit Court of Appeals later reversed this decision. The Supreme Court ultimately reversed the Eleventh Circuit’s decision and found that the creditor’s action was not deceptive, false, or misleading. The Supreme [...]

2017-07-09T13:12:07+00:00Tags: , , |

Supreme Court Decides Bankruptcy Case

The Supreme Court recently ruled that the Fair Debt Collection Practices Act (FDCPA) prohibits individuals who think that they are experiencing abusive debt collection practices to initiate legal actions against banks have bought defaulted loans from other lenders. The Supreme Court’s rule now states the FDCPA does not apply to a company unless that company is collecting debts. This landmark bankruptcy decision is also unique in that it is the first majority opinion written by recently elected Justice Neil Gorsuch. The Case at Hand The case of Henson v. Santander Consumer USA was heard by the Supreme Court concerns a group of debtors who defaulted on their auto loans and tried to initiate a legal action against a group of debtors who defaulted on their auto loans on the basis of predatory collection practices. The Supreme Court, however, found that because Santander owned and serviced the debt, Santander and other similar companies cannot be sued under the FDCPA. Regulations Under the FDCPA The FDCPA prohibits collection agencies from using abusive, deceptive, or unfair practices. These are several types of prohibited activities including: Harassing or using oppressive practices against debtors. Threatening that a lawsuit will be filed against a person when [...]

2017-07-09T12:51:06+00:00Tags: , , |