Creditor Violating Your Discharge? What to Do

If a creditor is contacting you about a debt that was discharged in bankruptcy, they are violating a federal court order. Here is how to identify violations, document them, and take action.

What Counts as a Violation?

The discharge injunction under 11 U.S.C. Section 524(a)(2) bars any act to collect a discharged debt as a personal liability. The following are all violations:

• Collection calls or voicemails -- Any phone contact demanding or requesting payment of a discharged debt
• Demand letters -- Written correspondence stating you owe a balance on a discharged debt
• Billing statements -- Sending monthly statements showing an amount due (as opposed to informational statements)
• Lawsuits -- Filing or continuing a state or federal court action to collect a discharged debt
• Wage garnishment -- Garnishing your wages or salary for a discharged debt
• Bank levies -- Freezing or seizing funds from your bank account
• Liens on after-acquired property -- Attempting to assert personal liability through new liens (note: pre-petition in rem liens may survive -- see exceptions)
• Threats or intimidation -- Verbal or written threats about consequences of not paying a discharged debt
• Reporting to credit bureaus -- Reporting a discharged debt as active, delinquent, or having a balance (see credit reporting guide)
• Conditioning services -- Refusing to provide utility service, housing, or other services unless you pay a discharged debt

How to Document Violations

Strong documentation is the foundation of any contempt motion or complaint. Start building your record immediately when a violation occurs.

For Phone Calls

• Write down the date, time, caller's name, phone number, and company name immediately
• Note exactly what was said -- were they demanding payment? Threatening consequences? Asking you to "resolve" the account?
• If your state allows one-party recording, record the call (check your state's wiretapping laws first)
• Save your phone's call log showing incoming calls from the creditor
• If they leave a voicemail, save it -- do not delete it

For Written Communications

• Keep the original letter or notice in a safe place
• Photograph or scan it immediately
• Save the envelope -- the postmark is evidence of when it was sent
• Note when you received it

For Credit Report Violations

• Pull your credit reports from AnnualCreditReport.com (free weekly through 2026)
• Screenshot or print any discharged debt showing a balance, showing as delinquent, or not marked as discharged
• Save the date you pulled the report
• Keep records of any harm caused -- loan denials, higher interest rates, lost housing applications

For Lawsuits or Garnishments

• Keep all court papers
• Note the case number, court, and creditor's attorney
• Do not ignore the lawsuit -- respond and raise the discharge as a defense
• Contact a consumer attorney immediately

Step-by-Step Response

Here is the recommended sequence when you discover a discharge violation:

1. Confirm the debt was discharged. Check your bankruptcy discharge order. Make sure the specific debt was included in your bankruptcy (not a post-petition debt or a nondischargeable debt under Section 523).
2. Document the violation. Follow the documentation steps above. Be thorough -- you may need this evidence months later.
3. Send a cease-and-desist letter. Put the creditor on written notice that the debt was discharged. Use certified mail with return receipt requested. See the template below.
4. File a CFPB complaint. Submit a complaint at consumerfinance.gov/complaint. The CFPB tracks these complaints and they become part of the creditor's public record.
5. Consult a consumer bankruptcy attorney. Many attorneys handle discharge violation cases on contingency (no upfront cost). The creditor may be ordered to pay your attorney fees.
6. File a contempt motion. If the violations continue, you or your attorney can reopen the bankruptcy case and file a motion for contempt. See the contempt motion guide.

Cease-and-Desist Letter Template

Below is a template you can adapt. Send this by certified mail with return receipt requested. Keep a copy for your records.

When to Get a Lawyer Involved

You should strongly consider hiring an attorney if:

• The creditor has filed a lawsuit against you on a discharged debt
• Your wages are being garnished or your bank account has been frozen
• The violations are ongoing after you sent a cease-and-desist letter
• The creditor is a large company with a legal department (they will have lawyers -- you should too)
• You have suffered significant financial harm (denied housing, lost a job, etc.)

Many consumer bankruptcy attorneys handle discharge violation cases on a contingency basis, meaning you pay nothing unless you recover damages. The bankruptcy court can also order the creditor to pay your attorney fees under its contempt power.

You can find consumer bankruptcy attorneys through the National Association of Consumer Bankruptcy Attorneys (NACBA) or your state bar association's lawyer referral service.