Some credit card companies illegally try to collect debt that has been discharged in bankruptcy

Bankruptcy judge not amused. Capital One faces sanctions.

A personal bankruptcy is supposed to cut borrowers loose from lenders and debt collectors, but Capital One Financial Corp. —one of the nation’s largest credit-card issuers—sometimes doesn’t want to let go.

Leila Torres, a 35-year-old waitress who lives in Hawthorne, N.J., concluded her Chapter 7 bankruptcy case in 2009. She was stunned when she got a letter notifying her that Capital One was suing her for $4,266 in credit-card debt.

“I was trying to move on, and this whole thing has sucked me back into a nightmare,” she says.

Capital One dropped the suit after Ms. Torres accused the company in a separate lawsuit filed in September of flouting bankruptcy law. Capital One asked a bankruptcy judge to throw out her suit, but he refused.

Of course he refused.
More at the Wall Street Journal: Debts Go Bad, Then It Gets Worse