Rights and Protections after Bankruptcy
Feeling hunted and hounded by creditors is definitely something debtors want to put behind them—even after bankruptcy is over. During bankruptcy, an automatic stay prevents credit collection activities. Similarly, a discharge relieves debtors from further debt liability and also prohibits creditor collection attempts after bankruptcy. However, what can debtors do if a creditor continues to harass them even though the court grants a discharge?
An experienced bankruptcy lawyer can help a debtor file a motion against the creditor with the court. The motion requests that the court reopen the case to address the creditor’s violation. According to the U.S. Courts, a bankruptcy discharge is a permanent statutory injunction that prevents creditors from taking actions against the debtor. A discharge order prohibits creditors from:
- Sending collection letters
- Making harassing phone calls
- Filing lawsuits
- Garnishing wages
The court typically sanctions a creditor who violates a discharge order and can hold the creditor in contempt and impose a fine on the creditor.
Bankruptcy protection against employer discrimination
Another protection after bankruptcy is the protection against employment discrimination. Municipal, county, state, and federal government entities and private industry violate the law when they discriminate against individuals because they were debtors, had financial problems, or refused to pay discharged debts. Forms of discrimination include:
- Job termination
- Hiring discrimination
- Declining to renew, revoking, or suspending a license, franchise or similar privilege
- Imposing other job-related penalties because of debtor status
By working with experienced bankruptcy attorneys, debtors can protect their rights during and after bankruptcy.