The discharge of debt has been referred to as a "statutory injunction." How ironclad is this "injunction" against the creditors and is there ever an exception? Does the debtor have any recourse if a creditor tries to collect a debt that has been discharged?
What will be an ideal response?
The effect the Bankruptcy Code has on the debtor's dischargeable debt is powerful. Under 11 U.S.C. §524(a)(1 )(2 ), the discharge of debt through bankruptcy acts as a statutory injunction against any collection efforts the creditor asserts. In other words, not only is it unlawful for the creditor to pursue the debtor after the petition has been filed, it is equally, if not more, unlawful for the creditor to pursue the debtor post-discharge. There is however, an exception to this rule. If the debtor enters into a reaffirmation agreement with the creditor, the creditor retains all its legal and equitable rights to collect the debt and may pursue the debtor.
If any creditor attempts to collect a discharged debt from the debtor by any means, including harassing phone calls, letters, and commencing legal action, that creditor may be subject to court-imposed sanctions. To report such action to the Bankruptcy Court, the debtor would need to file a motion in the court that handled the bankruptcy case. The court will hear the motion and, if it determines that the creditor was in willful contempt of the court's ruling on discharge, the creditor may be ordered to pay sanctions. Sanctions against a creditor can include compensatory damages, including attorney fees and lost wages to the debtor for his or her time away from work to attend court hearings and to meet with his or her attorney.
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Ingrid wants to watch the Mummer's parade in Philadelphia. She agrees to pay Frieda $100 to let her and her friends watch the parade from the window of Frieda's second-story Broad Street apartment. Two days before the parade is scheduled to take place, it is canceled because of forecasts of a blizzard. Frieda is still prepared to let Ingrid and her friends use her apartment. Does Ingrid still
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In some states passing a test or the resulting certification are required to work as either a
freelance or an official court reporting. a. True b. False
The process of moving a patent application through the USPTO, from its filing to its conclusion, is called ______, which is the same term used for the process for trademark applications.
Fill in the blank(s) with the appropriate word(s).
A loan policy of title insurance does insure the right of access to and from the land.
Answer the following statement true (T) or false (F)