Bankruptcy violations usually fall into two buckets: what happened after the case was filed, and what happened after the discharge was entered.
The distinction matters. The automatic stay protects the debtor during the case. The discharge injunction protects the debtor after discharge. Same creditor pressure, different legal tool.
Stay vs. discharge chart
| Protection | Starts | Stops | Typical violation |
|---|---|---|---|
| Automatic stay | Filing date | Case dismissal, discharge, or court relief | Lawsuit, garnishment, repossession, collection call after filing |
| Discharge injunction | Discharge order | Ongoing | Collection of discharged personal liability |
What creditors still get wrong
| Conduct | Possible issue |
|---|---|
| Continuing wage garnishment after notice of filing | Automatic stay |
| Repossessing a car after filing without court relief | Automatic stay |
| Sending post-discharge collection letters | Discharge injunction |
| Reporting a discharged debt as currently due after dispute | FCRA plus discharge issue |
| Refusing to update internal collection notes after discharge | Evidence of continued collection intent |
Case law
Taggart v. Lorenzen, 139 S. Ct. 1795 (2019) is the key Supreme Court case for discharge-injunction contempt. The Court rejected both strict liability and purely subjective good faith. The standard asks whether there was an objectively reasonable basis for concluding the conduct might be lawful.
For the automatic stay, 11 U.S.C. 362(k) allows an individual injured by a willful stay violation to recover actual damages, including costs and attorney's fees, and in appropriate circumstances punitive damages. A violation can be willful even if the creditor did not intend to violate the law, so long as the creditor knew of the bankruptcy and intentionally took the act that violated the stay.
Evidence value chart
| Evidence | Stay violation | Discharge violation |
|---|---|---|
| Notice of bankruptcy filing | High | Medium |
| Discharge order | Medium | High |
| Collection letter with date | High | High |
| Call log or voicemail | High | High |
| Credit report after dispute | Medium | High |
| Garnishment docket | High | Low |
Bankruptcy violation workflow
Identify date of creditor action
|
+-- before filing: usually not a bankruptcy violation
|
+-- after filing, before discharge: automatic stay analysis
|
+-- after discharge: discharge injunction analysis
Why statistics belong in the analysis
Consumer financial problems increasingly surface through reporting and collection systems, not just lawsuits. The CFPB reported that debt collection, credit cards, and checking or savings complaints made up a combined 12% of complaints received in 2024, while credit and consumer reporting accounted for 85%. Source: CFPB 2024 Consumer Response Annual Report.
That mix explains why a bankruptcy violation review should include more than the bankruptcy docket. It should include credit reports, collector letters, phone records, mortgage statements, background checks, and any denial letters showing how the bad data was used.