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Discharging Debt in Bankruptcy and Creditor Harassment

When suffering financial problems, each dollar can become more important. If there is a choice between feeding the family or paying a bill, more often than not the choice will be made to put food on the table.

Sometimes juggling all of the bills and necessary expenses becomes too difficult. Creditors may begin to call and hound the people that owe them money. These companies may even employ extreme tactics in an effort to scare the individuals into making payments on past-due amounts.

Eventually, some individuals make the decision to file for bankruptcy. One of the protections that bankruptcy offers to those that file is that it ends the harassing calls from creditors. When the bankruptcy is finished, much of this debt may have been reduced or eliminated, allowing an individual to begin rebuilding a financial future.

However, one woman continued to be hounded by creditors, and eventually needed to sue the agencies before they would stop their aggressive behaviors. The woman and her husband had filed for bankruptcy, which had discharged the debt at issue. Two years after the bankruptcy was filed, the husband died.

The original creditors had sold the debt that was owed to other companies, and these other companies were now pursuing the woman for the amount that was owed despite the discharge.

It is a relatively common practice for companies to sell off debt to other companies. Some of these companies even strategically pursue debt that they know is attached to deceased individuals, sending letters to the surviving family hoping to recover something.

If you are experiencing financial challenges, know what options are available. Every dollar is important, and make sure that you are aware of what needs to be done for you to reduce your debt.

Source: The Huffington Post "Woman Sues Capital One, Says Debt Collectors Went After Her Late Husband's Discharged Debt" Alexander Eichler, June 27, 2012.

For more information, please see the bankruptcy page on our website.

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