When creditors try to collect from debtors when bankruptcy is filed, they may end up paying instead of collecting. In this case, when the debtor filed bankruptcy, a legal injunction known as a debtors discharge was in place that helps prevent collection actions from creditors including phone calls or letters that demand payment. The action also gives debtors a grace period that helps get finances back on track. Bank of America apparently ignored this discharge which some banks have been known to do.
The Bankruptcy Law Network claims Bank of America contacted the debtor at least 38 times and asked about payments that were outstanding. It was reported that the judge in this case, Arthur Briskman of Middle District Florida Bankruptcy Court for Fort Myers Division, ordered Bank of America to pay over $12,000 which included attorney fees and emotional distress.
There have been claims of Bank of America forwarding debtor information to collection agencies even after bankruptcy has been filed by the debtor. Often, when the bank decides to forward debt information to a collection agency, they claim to mention to the agency their records may not be accurate, meaning some debts may not be outstanding anymore.