Debt acquired before filing added to chapter 7 after discharged.

[elzabeth3]

I filed for chapter 7 in Arizona on 8/22/07 and my bankruptcy was discharged on 12/24/07. I just recently received a call from a collection agency for a debt that was incurred for a car title loan that I had back in 2006. I turned the car over to the company to settle the loan and never heard from them about it again. In December of 2010 I got a call from a collection agency stating that I owed around $400 for the difference in the loan and what they auctioned the car for. The information that the collection agency gave me stated that the debt was incurred on 11/9/06 and was placed with them to collect on 12/1/2010. I was not aware of this debt at the time I filed for chapter 7 and it is incurring interest at a rate of 110% till present. This debt has never been on any of my credit reports and I never received any notice from the company. Can this be added to my bankruptcy or am I just (SOL)?

[despritfreya]

If your Chapter 7 was a "no asset" case it is already included. A forgotten creditor is still subject to the discharge if there were no assets distributed by the Trustee. So, if you had a no asset case just send the collector a copy of the Discharge with a cover letter that tells it to "go away" and that any further attempt to collect will be deemed a willful violation of 11 U.S.C. 524(a) and that you will reopen the case for the sole purpose of seeking a contempt order against it an any employee who contacts you.

If you were an asset case you still owe the $$$.

Des.

[elzabeth3]

This probably sounds stupid but how can I tell if it was a no asset case? I had no assets to distribute so I would assume that is the case.

[despritfreya]

To be sure, you can check PACER or contact the Court and ask the clerk to look it up. Are you sure there was nothing to distribute. . . not even a tax refund? If so, you were probably a no asset case so just send the letter and see what happens.

Des.

[elzabeth3]

Nope, no assets whatsoever and no tax refunds. I did use an attorney for this so I guess I will call him and see what he says. I was trying to avoid that because it has been so long since he did my case... Thanks for your help

[tcreegan]

Hi all, Hi elzabeth,

The path of least resistance is to send the collection outfit a polite "cease & desist" letter and a copy of the BK discharge order. For a stamp and some paper this usually works wonders.

If they contact you again, reply that the debt involved was discharged in a BK proceeding on X date. Inform them that all communication is being recorded as evidence. Ask them to cease and desist any and all collection efforts. And actually do document any contact. Be sure to throw in Des' great line: that any further attempt to collect will be deemed a willful violation of 11 U.S.C. 524(a) and that you will reopen the case for the sole purpose of seeking a contempt order against it an any employee who contacts you.

If they persist, consult w/ your attorney.

Tom in Colo

ps: find out if they own the debt or are merely collecting on the debt. If they don't own it, find out who does and send them a letter too.