The Florida Bankruptcy Court recently came down hard on Bank of America after it ignored a Florida debtor’s discharge and continued to call the debtor thirty-eight times trying to collect on debts. The court ordered the bank to pay the debtor for emotional distress and attorney’s fees.
A debtor’s discharge is a legal action intended to protect a debtor. Following a discharge, collection agencies are not allowed to send letters or make phone calls asking for payment. This gives debtors time to collect their finances without harassing phone calls and other communications.
Creditors can file an objection to the debtor’s discharge. All creditors get notice of the debtor’s filing and a deadline to object. The court will not always grant a debtor’s discharge if the debtor concealed assets or has not fulfilled the necessary discharge requirements such as taking classes on personal financial management.
Not all debts are dischargeable in a Florida bankruptcy petition. The most common non-dischargeable debts are those for child or spousal support or willful injuries to another person or their property. Student loan debts are also usually not dischargeable, but sometimes a knowledgeable Orlando student loan help attorney can help.
Collection Agencies May Not Know of Discharge
Bank of America has ignored debtor discharges in the past. The Bank will give the debtor’s information to outside collection agencies even though the debtors have a discharge. One court ruled that Bank of America took “clearly inadequate” steps in order to determine if a debtor had a discharge. Another woman spent three years working with Bank of America after they had sold her account to a collection agency. The woman had in fact paid off her debt.
Filing for Bankruptcy can provide much needed relief for those in serious financial trouble. The process can be difficult and complicated. Floridians in need of a debtor’s discharge should consider contacting a local bankruptcy attorney to ease the process.
Source: Huffington Post, “BofA Allegedly Called Debtor 38 Times After He Filed For Bankruptcy,” Alexander Eichler, Mar. 30, 2012.