What Happens If a Creditor Calls After Your Bankruptcy Case is Closed
A successful Chapter 7 bankruptcy case begins when an attorney files the required paperwork on behalf of a client. The case remains open until the court closes the proceedings.
A “no asset” bankruptcy case is normally closed shortly after the notice of discharge is entered into the record because there are no nonexempt assets for the trustee to collect and sell. The case typically remains open for approximately four months after it was initiated.
Cases that include nonexempt property will take longer to settle. The trustee must collect the assets, sell the items and distribute the proceeds to any creditors. This process can take several months because it may take the trustee additional time to perform their duties.
Once you receive your notice of discharge, creditors are prohibited from trying to collect payment on any previous debt. Creditors who violate the order can be held in contempt of court and liable for damages. If a creditor does attempt to collect a previous debt, you should contact our office immediately. We will send them a copy of the discharge notice along with the written notification that they were included in the Chapter 7 bankruptcy filing. Most creditors stop illegal collection activities when they receive correspondence from an attorney. If the creditor continues to violate the injunction, we will take the necessary steps to halt the harassment.
