Creditor sold my debt!

[marzipan13]

I received a letter from collection agency, so I called them to discuss it. Turns out that the original creditor had sold my account on May 31st to this collection agency, who now owns the debt.
I guess that means I need to file an amendment to my creditors list! ack!

[marzipan13]

Auto loan - spoke with bank today

Ok, so I got a statement from my auto loan bank with late charges.
I called them about it. There is fine print on the statement that says:

"If you have filed a bk petition, this statement is provided for informational purposes to assist you with your voluntary payments and is not an attempt to collect a debt."

what bull$hit!

They told me that they are allowed to bill me late charges. And if I wait until after the hearing to lift the stay for them to take the car, it will be considered a reposession and look bad on my credit report!
I thought that I wasn't able to surender the car until after the hearing. I'm not using the car, it's been sitting in my drive way for a week.
Will it be considered a repossesion? Or am I protected under the bk case? Should I surrender it before the hearing?

[SinkingFast]

Did you file an Intent to Surrender on the car in your BK paperwork?? If so, then the bank person is blowing it out their butt.

Adding the late charges to your acct just lets them write off more "loss" on their taxes.

As far as the other Creditor that bought one of your debts just prior to filing,......... I wouldn't worry about amending your Petition. If that Collector contacts you after your BK is over and done,.......... Just tell them the debt was Discharged in BK. They are violating the Permanent Injunction.

[marzipan13]

Well, that collection agency told me that they own the debt now... not the credit card bank... they bought it on May 31st and they were never notified that I filed bankruptcy. They did update their file and told me that if I had listed the original credit card bank on the bk forms, that it doesn't count. Since they now are my creditor, not the bank. So, I guess I do need to amend my creditors list. I just don't want this collection agency to try and make me pay back the debt after discharged.
What also confuses me, is that the credit card bank is still reporting to the credit bureaus as the owner. Just says they transfered the debt for collection.
I tried calling the bank, but it disconnects me each time I enter in my acct# and zipcode (stupid automated system).
I have no way to talk to someone on the bank's end to figure out what's going on.

As for the car, I called the bank back and told them to come get it. They're coming tomorrow to pick the car up.
I've only used it a few times after I filed my intent to surrender, and it's been sitting ever since.

[familyof7]

That collection company is full of shi# you dont have to name them only the original creditor as you never signed any contract with them only the original creditor but you can add them and make it easier cause it seems as if they are con artist or you can fight it but it is 26.00 to add them

[SinkingFast]

Yep! It is a load of crap.

Once that debt is Discharged, it doesn't matter what Junk Debt Buyer bought it or when.

Same thing happened to us a couple weeks before we filed. A Collection Agency bought one of our debts. They contacted us about a week after we'd filed BK. I told them our attny's name, case number, and date we filed. That the debt was listed in BK. Haven't heard a word from them since.

But if it will give you piece of mind, you can do one of 2 things. You can mail them a copy of your notice, along with the Creditor's Matrix which clearly shows the original acct number and Creditor's name. Then they can consider themselves notified.

Or you can officially amend your petition to include this particular Creditor and make doubly sure they won't be bothering you again.

[JRScott]

Well, that collection agency told me that they own the debt now... not the credit card bank... they bought it on May 31st and they were never notified that I filed bankruptcy. They did update their file and told me that if I had listed the original credit card bank on the bk forms, that it doesn't count. Since they now are my creditor, not the bank. So, I guess I do need to amend my creditors list. I just don't want this collection agency to try and make me pay back the debt after discharged.
What also confuses me, is that the credit card bank is still reporting to the credit bureaus as the owner. Just says they transfered the debt for collection.
I tried calling the bank, but it disconnects me each time I enter in my acct# and zipcode (stupid automated system).
I have no way to talk to someone on the bank's end to figure out what's going on.

As for the car, I called the bank back and told them to come get it. They're coming tomorrow to pick the car up.
I've only used it a few times after I filed my intent to surrender, and it's been sitting ever since.

The collection agency is lying to you. They do that in hopes of getting some sucker to pay up. If you included the original creditor and account then they don't have a leg to stand on. If you want to amend it to have peace of mind you can do that.

Sounds like you've settled the bank thing, they were lying to you as well though. You can surrender it during anytime of the bankruptcy or after it closes and it does not hit your credit report for another hit, still considered part of the bankruptcy event.

[cathywhite4495]

Hee hee - it sounds like the collection agency got screwed. They bought a debt that can't be collected on!

I agree with the above posts about the original debt being the one that counts. My BK books say to list whatever creditors you can if a debt has been transferred around but if you have the original creditor down you can use that to discharge the debt collectors.

[SinkingFast]

Junk Debt Buying is a booming industry. Most folks who file BK don't know that once a debt is Discharged, it's Discharged. And, that a Permanent Injunction comes into place regarding any collection attempts for debts Discharged in BK.

Junk Debt Buyers count on the ignorance of regular folk and will tell you most anything to try and collect. They paid pennies on the dollar compared to what you owe. If you'll "settle" with them for just a fraction of that total debt,............ They hit the big one in slots.

Many of us will probably have similar encounters at some point down the road. JDB's that bought our old, Discharged debts coming back to haunt us.

[HenriettaHen]

Oh, yes - I just had a little run-in with CIT group, who bought one of my debts from Chase, who bought it from another collector, who bought from the original creditor.

A week after discharge, I got a demand notice. Then I got a letter saying they were going to make an entry on my credit report.

Two phone calls put a quick end to THAT! They've been warned that "any further contact from them or entries on my credit report will result in an ACTION". heh heh

They blamed it on Chase, who sold them a BUNCH of discharged debt, it seems!

Ha! Let them eat each other alive. Serves them right, the bottom feeders.

[marzipan13]

well, i think another creditor did the same... sold my debt to someone else. but it hasn't been updated on my credit report. if the original creditors' debts are discharged in bk and i don't file an amendment, will the new creditors accept the discharge?

[familyof7]

They have no choice. You can sue them if they harrass you after you notify them.

[familyof7]

It is the debt that gets discharged not the creditor if that makes since. You list the debt with the original creditor name and that debt is discharged if they sale that account and try to collect that is breaking the law.