11 May Bankruptcy Discharge and Arbitration:
So you got a discharge, none of your assets were taken, and now you want to pursue a previous creditor for collection violations which occurred prior to filing. Maybe there was an FDCPA or other state UDAP claim. Can you do it? Yes, as long as you listed those claims on your schedules as assets.
But even if you later pursue those creditors, watch out for their motion to compel arbitration! Nevertheless, although they may attempt to halt your lawsuit, the bankruptcy discharge may actually be your best weapon to attack the motion to compel arbitration. Below are two arguments to use arising directly from the discharge injunction to deny arbitration.
1) The Bankruptcy Discharge Makes It Impossible For The Creditor To Prove the Existence Of An Enforceable Arbitration Agreement.
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