Debt that has been declared in a bankruptcy
is called “Discharged Debt.” When debt has been discharged in a bankruptcy
court, NOBODY can try to collect this debt again. This includes the original creditor,
debt buyers and collection agencies. Discharged debt cannot appear on your credit
as anything other than a zero balance. Sometimes collection agencies report a discharged
debt to the credit bureaus, hoping you will pay off the debt rather than take the time
to correct the information with the credit bureaus. The debt will appear on your credit
report as if it had not been discharged by a court of law. When discharged debt re-appears on your credit
reports, it affects your credit score and can result in higher interest rates or credit
denials. Sometimes debt collectors buy discharged debt,
knowing they can’t collect on it, but hoping you don’t know that. These debt collectors
may tell you that the discharge doesn’t apply to them because they are not the original
creditor. Don’t be fooled. Creditors who attempt to collect a discharged debt are violating
a court order. The court can stop them, and they may even have to pay damages. So, remember: – Discharged debt need not be paid – it was
discharged in a court of law – Discharged debt should not appear on your
credit report except as a zero balance – Monitor your credit report and be proactive Debt that has been discharged in a bankruptcy
is no longer a valid and by law can not be collected by anyone.