The MN Bankruptcy Blog | Learn the Bankruptcy Process & More

Can I Discharge a Debt that is Already in Collections?

Written by Wesley Scott | June 5, 2024 at 10:30 AM

“Can I discharge a debt that is already in collections?”  - It’s a question many people ask when they look at beginning the bankruptcy process.  Sometimes, a debt collector might tell you you have no choice but to pay them once an account has been referred to them for collection.  What they might not tell you is that this debt may still be discharged through bankruptcy.  

This is also true even if a debt collector has already obtained a judgment to collect on the debt.  The underlying debt may still be dischargeable regardless of whether or not a debt collector has already received a judgment allowing them to collect on it.  Getting a notice of garnishment can be scary, and seeing a deduction from your paycheck or your bank account to satisfy a judgment for collections can be even scarier.  However, you can take action and stop it by leveraging the resources available to you through bankruptcy.

One of the many benefits of the bankruptcy process is that you are protected by something called the “automatic stay” once your bankruptcy is filed.  This means that as long as your bankruptcy is ongoing, you are protected from most types of creditors, who will not be able to garnish you or try to collect money from you during the bankruptcy.  Moreover, once you have received your bankruptcy discharge, our firm can help you remove judgments for collection from your record through our In-House 90-Day Credit Repair Program.  For more information on the benefits of this program, please visit:  Free 90 Day Credit Repair and Recovery Service (lifebacklaw.com)                   

CALL NOW FOR A FREE STRATEGY SESSION FROM AN MN BANKRUPTCY LAWYER AT LIFEBACK LAW FIRM 

If you have received a notice from a debt collector trying to collect on a debt, or if you have received a notice in the mail telling you that a creditor is going to garnish you, please feel free to contact our office to learn more about what we can do to help you put an end to the collections process.  When the time is right, or when you are ready, reach out to Minnesota’s most kind and helpful bankruptcy law firm by going now to www.lifebacklaw.com