Harassment After Bankruptcy
The Discharge Injunction
The Bankruptcy Discharge entered in either a Chapter 7 or Chapter 13 Bankruptcy instantly triggers one of the most powerful injunctions available, the Discharge Injunction. This injunction, provided by 11 U.S.C. 524, is one of the most powerful debt tools in America.
Once you receive a discharge in your case, all creditors that were discharged are forever banned from collecting personally against you on those debts through the discharge injunction of 11 USC 524. Should a creditor contact you for payment, it can be sanctioned and held in contempt via the Bankruptcy Court’s inherent authority of 11 USC 105.
Anyone who violates the Discharge Injunction may be liable for actual damages, punitive damages, attorney fees, and costs. For instance, a few years ago Countrywide refused to obey a Bankruptcy Discharge and continued to send mortgage statements to one of our clients. Despite repeated requests by Doan Law to have Countrywide Cease and Desist the unlawful conduct, Countrywide refused. Attorney Michael Doan then filed suit against Countrywide and Attorney Shawn Doan argued the case. Judge Meyers awarded over $55,000.00 in sanctions against Countrywide and an additional $500 per month sanction against Countrywide until compliance was reached.
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