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Payday Loan Company Settles After Attempting Debt Collection Despite A Bankruptcy

When an someone files for bankruptcy, the individual is attempting to handle their financial responsibilities properly. If an organization tries to collect a debt that was discharged as part of a prior bankruptcy filing, they may me violating your rights. Recently, the attorneys at Luftman, Heck & Associates represented a man who previously became entangled in significant debt and sought relief through Chapter 7 Bankruptcy. After completing the process, which included his payday loans, he received a discharge order eliminating the amount owed, but he began receiving letters from the payday company, attempting debt collection. The man was trying to recover from this situation and these letters obviously caused a lot of confusion about his financial well-being.

Our client contacted attorney Matthew Alden, who worked on his behalf to remedy the situation. Attorney Alden quickly filed suit under the Consumer Credit Protection Act (CCPA) and Fair Debt Collection Practices Act (FDCPA) advising that the company was violating the terms of the previous bankruptcy. In the end, our client was pleased to receive a monetary settlement from the payday loan company for violating the discharge order and confirmation from them that the debt was in fact no longer owed.

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