Collection agency claims debt was ‘postpetiton’ in bankruptcy case

Trial Notebook

By Steven P. Garmisa

Hoey & Farina

Posted May 2, 2023 11:23 AM

Christopher Blanco accused Action Collectors Inc., a debt-collection agency in Washington state, of violating a Chapter 7 discharge injunction when it sued for $746 he allegedly owed to his former employer, Apple Valley Counseling, under a reimbursement provision that was triggered two months after he filed for bankruptcy protection.But Action Collectors insisted these were postpetition debts that weren’t discharged.An October 2021 employment agreement required Blanco to pay for damaged equipment and reimburse Apple Valley …

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