What Do I Do if a Creditor Continues Collection After Bankruptcy Discharge?

 Posted on March 14, 2026 in Bankruptcy

Getting a bankruptcy discharge is supposed to be the moment the weight lifts. Under 11 U.S.C. § 524, a bankruptcy discharge acts as a permanent injunction that prohibits creditors from taking any action to collect a discharged debt, and creditors who violate it can be sanctioned by the court. As of 2026, your  personal obligation to repay eligible debts is eliminated, and you're legally protected from further collection efforts.

When a creditor keeps calling, sends a bill, or threatens legal action after your discharge, it can feel like the whole process meant nothing. It didn't. That creditor is breaking the law, and you have real options. Our Harris County, TX bankruptcy lawyer can help you understand what happened and what to do about it.

What Is the Bankruptcy Discharge Injunction?

When a bankruptcy court grants your discharge, it issues what is called a discharge injunction. This is a permanent court order that prohibits creditors from trying to collect any debt that was included in your bankruptcy. In most cases, once the discharge is in place, collection efforts on those debts must stop.

This protection covers phone calls, letters, lawsuits, wage garnishments, and any other attempt to collect a discharged debt. If a creditor crosses that line, they aren't just being aggressive. They are violating a federal court order.

What Counts as a Violation of a Bankruptcy Discharge Injunction?

Not every contact from a creditor after your discharge is automatically a violation, but many are. Common violations include:

• Sending collection letters or billing statements for a discharged debt

• Calling you to demand payment on a debt that was included in your bankruptcy

• Reporting a discharged debt as still owed in a way that pressures you to pay

• Filing or continuing a lawsuit to collect a discharged debt

• Attempting to repossess property for a discharged debt when the creditor no longer has the legal right to enforce the lien

If any of these things are happening to you, it's worth talking to an attorney right away. Creditors have been in this situation before and may be counting on you not knowing your rights.

What Should You Do if a Creditor Violates a Bankruptcy Discharge?

The first thing to do is document everything. Save every letter, voicemail, email, and any other communication the creditor has sent since your discharge. Write down the dates and times of any phone calls and what was said. This documentation will be important if you need to take action.

Next, contact a bankruptcy attorney. Your case may need to be reopened so the court can address the violation. According to the U.S. Courts, a debtor can file a motion with the bankruptcy court to reopen the case and report the creditor's actions, and courts will often do so to make sure the discharge is enforced.

What Happens to a Creditor Who Keeps Collecting After a Bankruptcy Discharge?

A creditor who violates the discharge injunction can be held in civil contempt of court. The standard sanction is a fine, but courts can also order the creditor to pay your attorney's fees and any actual damages you suffered as a result of their actions. In some cases, courts have awarded additional damages when the violation was intentional or repeated.

This isn't just a slap on the wrist. Courts take discharge violations seriously because the discharge is the whole point of bankruptcy. Without enforcement, the protection means nothing.

Can a Creditor Claim They Didn't Know About a Bankruptcy Discharge?

Sometimes, creditors argue they never received proper notice of the bankruptcy or the discharge. This can happen with large institutions where one department doesn't communicate with another. In those cases, your attorney can work to establish that the creditor had knowledge of the bankruptcy, which is what matters legally under 11 U.S.C. § 524.

Even if a creditor genuinely didn't know at first, continuing to collect after being notified of the discharge is still a violation. Ignorance doesn't hold up as a defense once the creditor has been informed.

Schedule a Free Consultation With Our Austin County, TX Bankruptcy Attorney

Attorney Vicky Fealy is Board-Certified in Consumer Bankruptcy Law by The Texas Board of Legal Specialization, a distinction that reflects a level of knowledge and dedication most attorneys never reach. She has helped thousands of people and businesses find real debt relief, and her focus has always been on helping good people get through hard times and take back control of their finances.

If a creditor is violating your discharge, you don't have to accept it. Contact our Harris County, TX bankruptcy lawyer at The Fealy Law Firm, PC today, and call 713-526-5220 to schedule a consultation.