Creditors to Pay Up for Chasing Debtors After Bankruptcy

The Bloomberg Bankruptcy Law Reporter is reporting, “Wells Fargo, Ocwen, OneWest, and other secured creditors must pay a Chapter 7 debtor $7,000 in emotional distress damages, and $39,142 in punitive damages for willfully violating a debtor’s discharge order (In re Dogar-Marinesco , 2016 BL 399968, Bankr. S.D.N.Y., No. 09-35544 (CGM), 12/1/16).

Judge Cecelia G. Morris of the U.S. Bankruptcy Court for the Southern District of New York Dec. 1 concluded that the five creditors, including RAS Boriskin and Duane Morris, harassed the debtors for years by filing an illegal foreclosure action against the debtors’ property and sending dozens of collection letters after their debt had been discharged in bankruptcy.

The creditors and their attorneys “cavalierly” violated the bankruptcy court’s discharge injunction over a period of years and should be sanctioned as a result, the court said.”

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