Can a Creditor Sue Me After a Bankruptcy Discharge?
When you are considering a personal bankruptcy filing, it is common to have questions about exactly how the bankruptcy will benefit you, including your rights with regard to creditor and debt collector contact after your case is over. One question you might have is: can a creditor sue me after a bankruptcy discharge? In short, you cannot be sued for any debts that are discharged. You can, however, be sued by a creditor for debts that are not discharged in a bankruptcy case. Our South Florida bankruptcy lawyers can provide you with greater detail below, and we are here to answer any questions you have about the dischargeability of particular debts under the US Bankruptcy Code.
Discharge Ends Your Liability for Any Discharged Debts — Creditors Cannot Take Any Collection Actions
Once a debt is discharged — whether you have filed for Chapter 7 bankruptcy, Chapter 13 bankruptcy, or Chapter 11 bankruptcy — the debtor is no longer liable for the debt. Accordingly, any debts that you (and your spouse, if you are filing jointly) have discharged in your bankruptcy case are debt for which you are no longer liable. What that means is that creditors have no legal grounds for taking any action against you to recover such debts, or even to attempt contacting you after the debts are discharged. You are free of those debts and any creditors or debt collectors linked to them once they are discharged.
However, it is important to know that all debts are not necessarily discharged in every bankruptcy case. Some debts are considered “exceptions to discharge” under the US Bankruptcy Code.
Creditors Can Continue Attempts to Collect on Any Debts That Are Not Discharged
If you have debts that are “exceptions to discharge,” once your bankruptcy case is finalized and other debts are discharged, you will still be liable for exceptions to discharge. Accordingly, creditors can still continue to contact you or to take action against you for these types of debts. Examples of non-dischargeable debts include debts for family support (such as alimony or child support) and many types of tax debt.
While the bankruptcy case is ongoing, the automatic stay will prevent legal action from creditors for non-dischargeable debt. At the end of the bankruptcy case, however, the creditor can resume steps to collect non-dischargeable debt.
Contact a West Palm Beach Bankruptcy Attorney for Assistance
Individual bankruptcy filings that result in a discharge of debt result in the debtor no longer being liable for any debts that are discharged. Since debts can be discharged in both Chapter 7 and Chapter 13 bankruptcy cases, it is important that you have a clear understanding of what debts you have that are eligible for discharge, and what rights you have after those debts are discharged at the end of your bankruptcy case. In short, you are not liable for discharged debt and creditors cannot take action against you for it. If you have any concerns or questions about the dischargeability of particular debts you are hoping to have eliminated in your bankruptcy case, you should get in touch with one of the experienced West Palm Beach bankruptcy lawyers at Kelley Kaplan Delaney & Eller, PLLC, PLLC.
Source:
law.cornell.edu/uscode/text/11
