The U.S. Court of Appeals for the Second Circuit (the Circuit in which New York resides) ruled recently that a claim for wrongful debt collection practices may be maintained in federal district court under the federal law known as the Fair Debt Collection Practices Act (“FDCPA”) or may resort to obtaining relief within the Bankruptcy Court.
The damages available to a debtor for a bankruptcy stay violation and those available under the FDCPA differ, so it is important that someone faced with creditor harassment or behavior that may be violative of debt collection practice laws or rules, whether a bankruptcy discharge or if no bankruptcy has been filed understands their respective rights and options.