American Bankruptcy Institute
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Handling discharged debt after a Florida bankruptcy

On behalf of Bankruptcy Law Firm of Clare Casas on Monday, January 26, 2015.

Once a debt has been discharged in bankruptcy, a creditor is no longer able to collect on that obligation. However, the debtor may voluntarily pay that debt if he or she chooses. After the debt has been discharged, a creditor has no legal standing to get that money back. If a creditor does take action to collect on a discharged debt, the debtor may file a motion with the bankruptcy court.

In this scenario, the debtor will ask the court to reopen the case. If the creditor is found to have illegally attempted to collect on a discharged debt, a civil penalty may be assessed. A debtor chooses not to make payments on a debt that has been discharged may not be disciplined by his or her employer. This is true whether the debtor is employed by a government agency or by a private employer.

Furthermore, an employer, whether public or private, may not take any other action to discriminate against an employee solely because he or she filed for bankruptcy. This includes harassing an employee, terminating employment or making a hiring or firing decision based solely on this fact. Additionally, a government body may not deny a license renewal or similar privileges merely because someone was a debtor or failed to pay a debt.

Anyone who is having trouble paying credit card debt or has fallen behind on their mortgage payments may wish to file for bankruptcy. Bankruptcy may make it possible to stop creditors from taking actions such as foreclosing on a home or wage garnishment. Those who wish to learn more about the process may talk to a bankruptcy attorney about the eligibility requirements for filing as well as other potential benefits of doing so.

Source: U.S. Courts, "Discharge In Bankruptcy", accessed on Jan. 24, 2015

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