One of the best perks about bankruptcy is the immediate stop of credit collections. When you file for bankruptcy your creditors are notified and are prohibited from contacting you or making any efforts to collect on the debt. Once your case proceeds with the court and a discharge order is issued, two things will follow:
1. Your discharge order will grant you a permanent release of liability over those debts. Any debt that was eligible for and granted a discharge as part of your bankruptcy filing will be forever uncollectible by a creditor. However, it is important to note that debts that were not included in your case are not protected by this order and will remain collectible in the future. Further, any jointly held debts could still be deemed collectible and the other party, your spouse for example, could be held solely liable. It is important to consult with your Dallas bankruptcy attorney to minimize this risk.
2. Your creditors are notified of your discharge and served an injunction order, stating that they are prohibited from trying to collect. Any creditor that attempts to collect on a discharged debt can be held in contempt and served a penalty fine for doing so. It is important that you information your Dallas bankruptcy attorney of any collection attempts so they can handle the matter right away.