A debtor
who has received a discharge may voluntarily repay any discharged debt. A
debtor may repay a discharged debt even though it can no longer be
legally enforced. Sometimes a debtor agrees to repay a debt because it
is owed to a family member or because it represents an obligation to an
individual for whom the debtor's reputation is important, such as a
family doctor.
What can the debtor do if
a creditor attempts to collect a discharged debt after the case is
concluded?
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 normal sanction for violating the
discharge injunction is civil contempt, which is often punishable by a
fine.
May an employer terminate a
debtor's employment solely because the person was a debtor or failed to
pay a discharged debt?
The law provides
express prohibitions against discriminatory treatment of debtors by both
governmental units and private employers. A governmental unit or
private employer may not discriminate against a person solely because
the person was a debtor, was insolvent before or during the case, or has
not paid a debt that was discharged in the case. The law prohibits the
following forms of governmental discrimination: terminating an employee;
discriminating with respect to hiring; or denying, revoking,
suspending, or declining to renew a license, franchise, or similar
privilege. A private employer may not discriminate with respect to
employment if the discrimination is based solely upon the bankruptcy
filing.
