Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
Yes. Your proof of claim form would be evidence of the uncollectable character of the debt, in the event that you are ever audited.
Hope this helps.
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You cannot continue to collect. If you do, the debtor can file a contempt motion with the bankruptcy court and you will be hit with punitive damages for willfully violating the automatic bankruptcy stay. Then you will owe the debtor, which is probably not what you want.
The only other option is to file an "adversary complaint" with the bankruptcy court and try to show that the original debt was procured from you by fraud. This is a very expensive litigation option, and you may lose -- so unless your debt is at least $10,000, you're probably wasting your time.
You can discuss this with a local bankruptcy attorney. For a referral,see: http://www.abanet.org/legalservices/lris/directory/main.cfm?id=TX and www.martindale.com.