My parents just filed bankruptcy, Chapter 7. They have an RV. They are keeping the RV but are not signing a reaffirmation a...
Full Question:
My parents just filed bankruptcy, Chapter 7. They have an RV. They are keeping the RV but are not signing a reaffirmation agreement, the RV company is just allowing them to keep on making the payments. The RV was discharged in the bankruptcy. IF 3 years from now they decide they cannot afford it anymore and decide to give it back to the RV company, are they liable for the balance on the account?
10/26/2007 |
Category: Bankruptcy |
State: California |
#11028
Answer:
If a creditor attempts collection efforts on a discharged debt, the debtor can file a motion with the court, reporting the action and asking that the case be reopened to address the matter. The bankruptcy court will often do so to ensure that the discharge is not violated. The discharge constitutes a permanent statutory injunction prohibiting creditors from taking any action, including the filing of a lawsuit, designed to collect a discharged debt. A creditor can be sanctioned by the court for violating the discharge injunction. The typical sanction for violating the discharge injunction is civil contempt, which is often punishable by a fine.