Judge Drain, U.S. Bankruptcy Judge for the Southern District of New York, has sanctioned Bank of America for violating a debtor’s discharge. In the case, Bank of America continuously sent the debtor bills and other correspondence each month that asserted that it would continue collection efforts “until your account is brought fully current.” Bank of America also called the debtor several times. The debtor’s attorney contacted Bank of America to try to get it to stop its collection efforts but to no avail.
Judge Drain found that Bank of America’s actions violated the debtor’s discharge injunction and denied them a fresh start. Consequently, he found Bank of America in contempt and fined them $10,000.00 per month until it corrected its actions. He also awarded attorney’s fees.