One of the key benefits of entering into the bankruptcy process is the protection it provides to the filer against harassment from debt collectors.
Whether the form of bankruptcy pursued is Chapter 7 or Chapter 13, the objective is to provide conditions that stop collection efforts and allow the person in financial distress the opportunity to regain solid footing so they can get on with their lives. The threat of hounding by collectors is supposed to be kept at bay.
When debt is eventually paid or discharged as part of the controlled bankruptcy process, collectors are prohibited from pursuing their efforts further. If they do continue it may be a violation of some state and federal laws. An attorney's help can be crucial in fighting such actions.
That's a route being taken by a Frisco couple against one debt collector. They filed suit in Sherman recently, claiming that Ocwen Loan Servicing has continued to press them for debt that was discharged as a result of bankruptcy proceedings filed in 2008 and 2009.
The nature of the debt -- the amount and to whom it was owed -- isn't apparent from the news item about the case. The key elements of the couple's claim are that they properly listed the debt as an unsecured obligation in their bankruptcy proceedings; that it was properly discharged by the court; and that the defendant is violating federal and Texas state law by persisting in trying to collect.
The plaintiff couple is seeking compensation of for damages and all costs associated with the case including, actual damages, statutory damages, punitive damages, interest, legal fees and court costs.
No response from the collection company has been reported as of this posting.
Source: SETexasRecord.com, "Frisco couple says debt collector continues contact despite bankruptcy," Michelle Keahey, Sept. 16, 2013