Client Wins $10,000 Judgment Against Creditor

A bankruptcy court today gave one of my bankruptcy clients a $10,000 judgment against one of his creditors for attempting to collect a debt after the entry of the debtor’s discharge. A key part of my client’s success was his detailed documentation of collection letters and calls as well as my own repeated written warnings to the creditor.

After the entry of the Chapter 7 discharge one of the creditors made several collection calls to the client/debtor. I wrote a warning letter to the creditor reminding it of penalties for collection of debts after discharge. The creditor sent bills and letters. I wrote another warning letter. Collection continued.

Seeing my letters being ignored I filed a Motion for sanctions and attorneys fees against the creditor. The creditor representative then wrote a letter of apology promising that there would be no more calls. Even after the apology and promise the creditor continued calling my client and even left a threatening voice mail message.

In court, my client produced “screen shots” from his cell phone showing phone calls from a phone number that matched the creditor’s phone. The judge was also very interested in listening to my client’s recording of the collection voice mail that was recorded with date and time of call.

The court awarded the client $1,000 sanctions for each of 10 documented post-discharge collection efforts plus attorneys fees.

There are many creditors that continue to harass bankruptcy clients. Courts will sanction these creditors that disregard the authority of the bankruptcy discharge. Be sure you document collection efforts as my client did by saving letters, saving voice mail, and making pictures of Caller ID records.

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