Recent decisions in the 9thCircuit have awarded damages and attorney’s fees to Debtors in situations where creditors have acted wrongfully. One such case is in re Marino, where the Bankruptcy Court awarded damages of over $100,000 and attorneys’ fees against Ocwen Loan Servicing Company.
One of the major reasons why people file for relief under the Bankruptcy laws is to get “breathing room” from their creditors and to discharge their debts. A discharge means that a creditor cannot try to collect money from the debtor after the bankruptcy is over. When a creditor takes action to collect a debt that has been discharged, that creditor can be sanctioned by the Bankruptcy Court and the Debtor can be awarded damages, including attorney’s fees and punitive damages if appropriate.
If you filed for Bankruptcy and received a discharge and any of your creditors is trying to collect a debt that was discharged in your bankruptcy (some debts are not discharged) you may be entitled to seek damages.
