If a creditor is trying to collect after discharge, federal law is on your side: the bankruptcy discharge order permanently bars collection of debts it wiped out, and a creditor who keeps calling, writing, suing, or garnishing can be held in contempt and made to pay you damages.1Office of the Law Revision Counsel. 11 USC 524 – Effect of Discharge The path forward is straightforward. Confirm the debt was actually discharged, put the creditor on written notice, and if that doesn’t stop it, take them back to bankruptcy court.
Confirm the Debt Was Actually Discharged
Before you spend energy fighting a collector, make sure the debt was covered by your discharge. Pull your case file and check three things.
- You received a discharge order. In Chapter 7 cases it typically arrives about 60 days after the meeting of creditors. In Chapter 13 it comes after you complete the repayment plan. A case that was dismissed rather than discharged gives you no injunction to enforce.
- The debt appeared on your bankruptcy schedules. Unscheduled debts can sometimes still be discharged, but that’s a gray area that varies by jurisdiction.
- You did not sign a reaffirmation agreement on this specific debt.
You can pull your discharge order and case documents from the bankruptcy court’s electronic filing system, from your bankruptcy attorney if you had one, or from the court clerk’s office for a small fee.
When a Creditor Is Still Allowed to Collect
Some post-discharge contact is legal, and it helps to know the boundaries before firing off a demand letter.
Non-dischargeable debts. Certain categories survive bankruptcy regardless of your discharge: child support and alimony, most student loans, certain tax debts, debts for personal injury caused by drunk driving, and obligations arising from fraud or intentional harm.2Office of the Law Revision Counsel. 11 USC 523 – Exceptions to Discharge Some of these, like fraud-based claims, only remain non-dischargeable if the creditor challenged the debt during your case by the deadline; a creditor who slept on that deadline can’t revive the argument now. Others, like child support and most tax debts, are automatically non-dischargeable whether or not the creditor did anything during the case.
Reaffirmed debts. A reaffirmation agreement is a voluntary contract you sign during bankruptcy agreeing to remain personally liable on a specific debt, most often a car loan or mortgage where you want to keep the collateral.3Legal Information Institute. Federal Rules of Bankruptcy Procedure Rule 4008 – Reaffirmation Agreement and Supporting Statement If you signed one, that debt is treated as though you never filed on it. Missing payments gives the creditor the same remedies it had before your case.
Surviving liens. A discharge eliminates your personal obligation to pay a debt but does not automatically remove a lien attached to your property. A mortgage lender can’t sue you for the balance or send you to collections after discharge, but it can still foreclose if you stop paying. The same goes for a car lender with a valid lien. A creditor contacting you about the collateral itself may be within its rights, so long as it isn’t demanding payment from you personally.
Send a Cease-and-Desist Letter
Once you’ve confirmed the debt was discharged and not reaffirmed, put the creditor on written notice. Send the letter by certified mail with return receipt requested so you have proof of delivery, and keep copies of everything. Include:
- Your bankruptcy case number and the court that handled it, so the creditor can look up your case.
- The date of your discharge order.
- A copy of the discharge order itself.
- A direct demand that all collection activity on this debt stop immediately, with a statement that any further contact violates the discharge injunction and you will seek sanctions.
This letter often ends the matter. Many post-discharge collection attempts come from third-party debt buyers who don’t have records of your bankruptcy; once they see the discharge order, legitimate collectors typically back off. The paper trail also does something important if the problem escalates: it eliminates any claim by the creditor that it didn’t know about your discharge.
Clean Up Your Credit Report
A discharged debt that still appears as active or past due on your credit report is a separate problem that can quietly undermine the fresh start. Under the Fair Credit Reporting Act, both the credit bureaus and the creditors furnishing information are responsible for correcting inaccurate entries. A discharged debt should show a zero balance and reflect that it was included in bankruptcy.
File a dispute directly with the bureau reporting the error — Equifax, TransUnion, or Experian — online, by phone, or by mail. The bureau must investigate by contacting the creditor, which has 30 days to respond. If the creditor cannot verify the debt or confirms it was discharged, the bureau must correct or remove the entry.
When a bureau or furnisher refuses to correct obviously wrong information after a dispute, you may have a separate claim under the FCRA for statutory damages, actual damages (things like being denied credit or paying higher interest rates), and emotional distress damages. The Consumer Financial Protection Bureau also handles complaints about credit reporting at consumerfinance.gov.
Reopen the Case and File for Contempt
If the letter doesn’t work, go back to the bankruptcy court that handled your case by filing a motion to reopen.4Legal Information Institute. Federal Rules of Bankruptcy Procedure Rule 5010 – Reopening a Case Reopening specifically to enforce a discharge is a routine use of this procedure. Some courts waive the reopening fee for discharge-violation motions, though this varies by district.
Once the case is reopened, file a motion for contempt or sanctions. The court will schedule a hearing. Bring the discharge order, copies of the collection letters and call logs, your cease-and-desist letter, and the certified mail return receipt. You need to show the debt was discharged and that the creditor continued collection activity after the discharge was entered. This is the point where hiring a bankruptcy attorney tends to pay off; the procedural requirements for contempt motions are specific, and attorney’s fees are often recoverable if you win.
What You Can Recover
When a court finds that a creditor willfully violated the discharge injunction, it can award sanctions designed to make you whole and deter future violations:
- Actual damages, including any money you paid on the discharged debt, bank fees from unauthorized garnishments or levies, and other direct losses.
- Emotional distress damages, which courts recognize because being hounded after bankruptcy causes real stress.
- Punitive damages, in cases where the creditor’s conduct was particularly aggressive or repeated.
- Attorney’s fees and costs, which is why lawyers are often willing to take these cases.
The word “willful” matters. To prove a willful violation, you generally need to show the creditor knew about the discharge injunction and intentionally took the collection actions anyway.1Office of the Law Revision Counsel. 11 USC 524 – Effect of Discharge The creditor doesn’t need to have intended to break the law; it’s enough that they intended the collection activity while aware of the discharge. A creditor who genuinely never received the discharge order may have a defense, which is exactly why a certified cease-and-desist letter with a copy of the order is so valuable. After that letter, no creditor can credibly claim ignorance.
The exact standard for willfulness varies by jurisdiction. Some courts require actual knowledge that the discharge applied to the specific claim; others accept constructive knowledge — proof that the creditor should have known. Either way, a paper trail of your letter, the return receipt, and any collection activity dated after delivery puts you in the strongest possible position.