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  1. #1
    Join Date
    Sep 2016
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    Default Can You Be Arrested for Not Paying a Debt That Was Included in Your Bankruptcy

    A customer financed furniture, but later defaulted on the loan. The loan was discharged in bankruptcy. The customer has since declared bankruptcy, and the debt for the furniture was included in the bankruptcy and was discharged. The customer is now being sued for the debt, and has been told that he can be arrested if he does not pay. Is that true under Georgia law?

  2. #2
    Join Date
    Sep 2005
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    Default Re: Can You Be Arrested for Not Paying a Debt That Was Included in Your Bankruptcy

    The customer should speak to the lawyer who handled the bankruptcy case, as the creditor may be in contempt of court. If this is a debt collector, they may also be violating the Fair Debt Collection Practices Act (FDCPA).

    There is a possibility that this is an action to recover the physical furniture, consistent with a lien held by the lender (most likely a purchase money security interest). I think it's more likely that a regular debt collection lawsuit was filed despite the discharge of the debt, or that no lawsuit has been filed and the customer is dealing with a junk debt buyer who is engaged in unlawful collection practices.

    If a lawsuit has been filed and served, and the defendant is ordered by the court to appear, the defendant may potentially be made the subject of a bench warrant for non-appearance. But if they appear in court as ordered, it's a civil case so there is not jail time for not paying a debt.

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