discharged.. but received a collection call. is this legal?

[troublmaker_98]

I filed chapter 7 in michigan and the case was discharged august 2007. Included in the BK was my home (negative equity situation). Just moments ago i received a collection call from Countrywide mortgage, the representative stated this was an attempt to collect a debt, call may be recorded, yada yada yada.

Once it was my turn to speak, i advised her the property was included in a Chapter 7 BK that has been discharged. She told me that Country Wide has the right to call in attempt for collection and report to the credit bureau. And what was my intent with the debt.

I did request her name, phone number and address. Is Country Wide (or any creditor) included in my BK allowed to call after discharge? It was my understanding that BK means they cannot attempt further collection.

Can anyone share experience with this type of issue? Or can anyone suggest what i do so i don't continue receiving calls?

thank you..

[rilbrianne]

I can't offer advice but I thought that was kind of the whole point of BK. Call your lawyer. And get back to us. Good luck

[keepmine]

Contact your attorney. The attempt to collect violates the permanent injunction that a bk discharge carries.

[nc73]

Did you get any details as to the amount, etc?

[lrprn]

I filed chapter 7 in michigan and the case was discharged august 2007. Included in the BK was my home (negative equity situation).

Did you surrender your home and during the bankruptcy Countrywide filed to lift the stay to foreclose on it? Or did you keep the home intending to keep making payments and live in it after discharge?

[troublmaker_98]

yes, this home was surrenderd in the BK. yes, Countrywide did file to lift the stay (we did not challange their letter) and the property was vacated just prior to the August discharge. we never intended to keep the home. as of now i am about 9 payments behind, and the "tags/notices" are attached to the property. i did not record the dollar amount requested on the call.

[lrprn]

yes, this home was surrenderd in the BK. yes, Countrywide did file to lift the stay (we did not challange their letter) and the property was vacated just prior to the August discharge. we never intended to keep the home. as of now i am about 9 payments behind, and the "tags/notices" are attached to the property. i did not record the dollar amount requested on the call.

Then Countrywide is violating the automatic stay. Call your lawyer and inform him/her about what is going on. Your lawyer will send them a sternly worded letter about the legal risk they are taking pursuing a discharged debt.

If you didn't file with a lawyer, then contact a consumer protection lawyer near you - http://www.naca.net/ . They will be very interested in what Countrywide is doing in this situation.

[Minnymouth]

Sounds like a fine example of "the bankruptcy dept does not know what the Collections Dept is doing"..............

[seraph79]

Sounds like a fine example of "the bankruptcy dept does not know what the Collections Dept is doing"..............

It's rather ridiculous, too. I'd make sure to get an updated copy of your credit report just to make sure they aren't reporting this debt again because if they are, they are violating the Fair Credit Reporting Act and also the Fair Debt Collection Practices Act. Too bad Countrywide doesn't file for bankruptcy for the billions of subprime $ they are risking losing...It would be nice to see their investors sue them for packaging bum loans into securities.

[chpxiii]

It's rather ridiculous, too. I'd make sure to get an updated copy of your credit report just to make sure they aren't reporting this debt again because if they are, they are violating the Fair Credit Reporting Act and also the Fair Debt Collection Practices Act. Too bad Countrywide doesn't file for bankruptcy for the billions of subprime $ they are risking losing...It would be nice to see their investors sue them for packaging bum loans into securities.

To report that there is a balance due on a credit report is considered an act of collection on that account. If that account was part of the BK and was discharged, it is also a violation of the automatic stay of bankruptcy.

One way to follow up on this is from the bankruptcy law angle and through bankruptcy courts. They aren't too keen on creditors and collectors trying to collect on discharged debts.