I have unsecured creditors from 20 years ago making claims into my chapter 13

[moorman]

a few months after filing, a noticed some unfamiliar debt collectors who tried to file claims into my chapter 13. i called and found out they were from stuff over 20 years ago. then, today, i checked my case and found another one from over 20 years ago. apparently, my attorney is treating them as getting zero payments from the plan. questions:

1. i thought there was a statute of limitations on collecting debts. in georgia, the statute on collecting a debt is 6 years for promissary and written contracts.

2. since they filed into my plan, can they try and re age the accounts and slide them unto my credit reports?

[bcohen]

1. The statute of limitations (SOL) is how long a creditor has once you default in order to collect through the courts. After that date, they cannot (legally) sue, but they can still call you and send letters asking for the money. Of course, once the SOL has passed, most intelligent people would ignore any letters or phone calls regarding their old debts, and not pay any money toward said debts. However, the debt still technically exists, and technically is still owed--provided that whoever owns it can provide proof that the debt is valid and that they own it.

Thus, it is up to you to file an objection to any creditor claim which you disagree with. This would include any debts which are past the SOL, or have been sold to junk debt buyers. The creditor will then have to provide proof that the debt is valid, that the amount they are seeking is correct, and that they are entitled to collect. For old debts, which have been sold several times, I guarantee you that the creditor will not be able to provide the necessary documentation, so their claim should be denied.

2. No, they cannot (legally) re-age your debts, however some junk debt buyers and collection agencies have been known to do things such as this anyways. Therefore, you should keep an eye on your credit reports, and be prepared to file disputes and/or legal action if any of your creditors chooses to post false negative information.

[moorman]

1. The statute of limitations (SOL) is how long a creditor has once you default in order to collect through the courts. After that date, they cannot (legally) sue, but they can still call you and send letters asking for the money. Of course, once the SOL has passed, most intelligent people would ignore any letters or phone calls regarding their old debts, and not pay any money toward said debts. However, the debt still technically exists, and technically is still owed--provided that whoever owns it can provide proof that the debt is valid and that they own it.

Thus, it is up to you to file an objection to any creditor claim which you disagree with. This would include any debts which are past the SOL, or have been sold to junk debt buyers. The creditor will then have to provide proof that the debt is valid, that the amount they are seeking is correct, and that they are entitled to collect. For old debts, which have been sold several times, I guarantee you that the creditor will not be able to provide the necessary documentation, so their claim should be denied.

2. No, they cannot (legally) re-age your debts, however some junk debt buyers and collection agencies have been known to do things such as this anyways. Therefore, you should keep an eye on your credit reports, and be prepared to file disputes and/or legal action if any of your creditors chooses to post false negative information.

i see what you are saying. the debt is still valid UNLESS discharged thru a chapter 7, so they can collect, just not thru a court. so, what appears to be happening is these junk collectors are scanning the bankruptcy courts to see if you have filed a chapter 13 and hope you re age the debt by making payment thru the court or some other form of acknowledging it.

[justbroke]

I had this exact problem in my Chapter 13. A 20-year old American Express debt, even though I was a current (just prior to filing) Amex cardholder. In any event, I motioned to Strike and the Judge asked me "why [I] would want to do that" hinting that it would be discharged in the Chapter 13.

As bcohen eludes, you still technically owe the debt outside the statute of limitations to employ process to collect the debt.

Just let them file a claim unless you need to disallow the claim (which is different from striking the claim!) based on something other than an SOL limitation.

At least, that's how I understand the state of this relative to a Chapter 13 bankruptcy.

[moorman]

I had this exact problem in my Chapter 13. A 20-year old American Express debt, even though I was a current (just prior to filing) Amex cardholder. In any event, I motioned to Strike and the Judge asked me "why [I] would want to do that" hinting that it would be discharged in the Chapter 13.

As bcohen eludes, you still technically owe the debt outside the statute of limitations to employ process to collect the debt.

Just let them file a claim unless you need to disallow the claim (which is different from striking the claim!) based on something other than an SOL limitation.

At least, that's how I understand the state of this relative to a Chapter 13 bankruptcy.

which must be the reason my attorney didnt address the other items i told him about a few months back. they wanna let it just get discharged thru the chapter 13. thanx for clearing this all up.

[frogger]

Ask yourself this question:

How much "extra" are all of these old filings going to cost me?

You will find the answer will probably be $0.00.

Let them file, and let them be discharged. And if they don't file claims, file for them! Sweet deal.

[justbroke]

Unless you are in a 100% plan, claim policing isn't a big deal. However, i would still police claims and make sure the creditors are entitled. Entitlement has nothing to do with the SOL; entitlement is whether they own the debt and can demonstrate that they are the owner of the debt. I must have objected to at least 10 claims in my Chapter 13 and all but 1 was overruled! The rest were "disallowed". If I were in a 100% plan, this could matter, but even in a 0% plan, it still felt nice to know that certain creditors would receive nothing (if some extra money came into the bankruptcy estate).

The debt does not need a corresponding claim in order to be discharged. The debt needs to minimally be "scheduled" in a Chapter 13. (It is important in Chapter 13s to schedule ALL DEBT. A Chapter 13 is always an "asset" case. Only scheduled debt will be discharged.)

[Danglin]

I had an old debt (circa 1993) popup as a claim when we filed our 13 in early 2011. When I mentioned it to our attorney, he said this is actually pretty common and that we shouldn't worry about it, as it doesn't impact our payment. So, we just let it slide.

[freeme0215]

What about a creditor included in my Chapter 13, that is now showing on my credit report? it says that the account is "in chapter 13" and it is listed as potential negative on my report...I am watching it to see if it stays there....or should I contact attorney?

[LadyInTheRed]

What about a creditor included in my Chapter 13, that is now showing on my credit report? it says that the account is "in chapter 13" and it is listed as potential negative on my report...I am watching it to see if it stays there....or should I contact attorney?

Not only did you ask this question in another thread, it is not the same issue as discussed in this thread. Please don't post the same question twice or revive old threads without a good reason.

[freeme0215]

Why can I not ask this question? I am sorry, but I do not understand...makes me want to not post...guess that is fine....

[LadyInTheRed]

Why can I not ask this question? I am sorry, but I do not understand...makes me want to not post...guess that is fine....

You can ask the question, but, like I said, it is against forum rules to revive an old thread without a good reason. Your post adds nothing to this thread about old creditors filing claims in a BK.

You are also more likely to get a response if you start a new thread rather than tacking a question at the end of a thread on a different topic.