Discharged Debt Is Big Business in Florida
As a Consumer Bankruptcy Attorney, I speak to potential bankruptcy clients on a daily basis. I also speak with past bankruptcy client who are experiencing problems with debts that were included in their bankruptcy cases. The post-discharge collection of discharged debts has become big business. I have written extensively on this topic for http://www.bankruptcylawnetwork.com before this blog came into existence.
Recently, Business Week ran an article about debt collectors that purchased discharged debt and then attempt to collect on it. I was contacted by the researchers of the article for information on the post discharge collection efforts used. Unfortunately, they did not use me in the story, but I was glad that the subject of many of my blogs was finally brought to light.
In Florida, especially Southwest Florida, our economy is in the toilet. We are seeing a correction in the real estate market of tsunami proportions. This financial tsunami is carrying forward to the credit card market as well. The lower level debt collectors are purchasing old debt and bad debt by the truckload. In reality, they purchase accounts which are, point and click, forwarded to them. I see lawsuits daily that should be dismissed. Additionally, I have clients re-opening their cases to pursue lawsuits for violations of their discharge orders.
When a person files for bankruptcy, the end goal is the Discharge Order. The Discharge allows them the ability to start fresh. The Discharge is now being ignored because of some unscrupulous creditors who seek exorbitant profits at the risk of being caught. If caught, they pay the damages, which are insignificant in individual cases, and continue with their behavior.
