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Can payment to me be withheld to cover debt that was discharged in a bankruptcy?
Anonymous9 views3 answers
A co-op is paying our money from patronage capital and they are withholding monies to cover a debt owed to them but was discharged in a bankruptcy. Can they legally do that?
I do not believe they can, but I have not seen the agreement, your bankruptcy, etc. You need to contact whomever did your bankruptcy and get advice from them.
More likely than not as doing so would be a violation of the discharge order, but I would highly suggest you contact your bankruptcy attorney and have them look into the situation further.
Both attorneys gave good answers. The discharge injunction would protect if there were no other material facts. But in your case we do not know enough. For example, in a hypothetical case a loan that was cross colateralized sometimes appears to debtors as if the bank is trying to collect on a debt that was discharged. But due the nature of the secured loan, they can. Consult a bankruptcy attorneys.
