What should I do if a creditor tries to collect a discharged debt?

First, send the creditor a written notice that the debt was discharged, including the case number and discharge date. If the creditor continues, you can file a motion for contempt in the bankruptcy court that issued your discharge. The court can order the creditor to stop, pay your attorney fees, and award damages. You may also have claims under the Fair Debt Collection Practices Act (FDCPA) if a third-party collector is involved.

Can Creditors Collect After Bankruptcy Discharge?

Q: Can creditors collect after bankruptcy discharge?

No. The discharge injunction under Section 524 of the Bankruptcy Code permanently prohibits creditors from taking any action to collect a discharged debt. This includes phone calls, letters, lawsuits, wage garnishment, and reporting the debt as owed to credit bureaus. A creditor who violates the discharge injunction can be held in contempt of court and ordered to pay damages.

No. The discharge injunction permanently bars collection on discharged debts. Violations can result in contempt of court.

The discharge injunction

When a bankruptcy court enters a discharge order, Section 524(a)(2) automatically creates a permanent injunction that prohibits any creditor from taking action to collect a discharged debt. This is one of the most powerful protections in bankruptcy law.

The injunction applies to the original creditor, any subsequent holder of the debt, and any debt collector -- anyone who attempts to collect a debt that has been discharged.

What creditors cannot do after discharge

Phone calls or letters demanding payment
Lawsuits to collect the discharged debt
Wage garnishment
Bank account levies
Property liens based on the discharged debt (pre-existing liens may require separate action)
Credit reporting the debt as currently owed (it should show as "discharged in bankruptcy")
Offsetting the discharged debt against amounts owed to you
Withholding services to coerce payment of a discharged debt

What to do if a creditor violates the discharge

Document everything. Save copies of collection letters, record dates and times of calls, and screenshot any credit report entries showing discharged debts as owed.
Send written notice. Write to the creditor informing them the debt was discharged, including your bankruptcy case number, the court, and the discharge date. Send it by certified mail.
File a motion for contempt. If the creditor continues, you can file a motion in the bankruptcy court that issued your discharge. The court can hold the creditor in contempt and award damages.
Consider FDCPA claims. If a third-party debt collector is involved, you may also have claims under the Fair Debt Collection Practices Act, which provides statutory damages of up to $1,000 plus actual damages and attorney fees.

Common violations

According to court records, the most common discharge violations include: collection agencies purchasing old debt portfolios and attempting to collect without checking for bankruptcy discharges; creditors continuing automated collection letters; and creditors reporting discharged debts as active on credit reports.

Debts that survive discharge

The discharge injunction only applies to debts that were actually discharged. Certain debts are not dischargeable and creditors can continue to collect them after bankruptcy:

Student loans (unless undue hardship is proven)
Recent tax debts
Child support and alimony
Debts from fraud or willful injury
Criminal fines and restitution

In rem liens survive

While the discharge eliminates your personal liability for a debt, it does not automatically remove a lien on your property. For example, if you discharge a second mortgage but keep your home, the lien may remain on the property even though you no longer owe the debt personally. Removing liens may require a separate motion in the bankruptcy court.

Learn which debts can and cannot be discharged.

Non-Dischargeable Debts

Related resources

Section 524 -- Discharge Injunction -- The statute explained
Non-Dischargeable Debts -- What survives bankruptcy
After Chapter 7 Discharge -- What to expect
Bankruptcy on Credit Report -- Duration and rebuilding
Dismissed vs. Discharged -- Why the outcome matters

This page provides general information based on publicly available federal court records. It does not constitute legal advice. Consult a licensed attorney for advice on your specific situation.

This tool is free and open-source. Donations fund PACER access fees and our goal of forming a 501(c)(3) nonprofit for bankruptcy court transparency.

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