Notifying New Creditors

[Kim02]

My mother is going thru a bankruptcy and she filed around the last week of July and all of the creditors were notified during that time BUT last week she received two new collection notices from new creditors. Apparently what happened was when the old creditors heard that she was fixing to file bankruptcy, they quickly sold her account to another collection agency so as to make some money due to the fact that they usually don't receive much if anything in a chapter 7 but if they sell the account, they can make some money.

So anyway, she has an attorney that has not really been up on things and I am wondering if he is competent at all in the area of bankruptcy and I don't trust him to handle everything as he has forgotten some very important things during her case.

A lady at the bankruptcy court had told me, over the phone, that the new creditors need to be notified, by written notice, of the bankruptcy but when I asked her attorney twice about this, he said it is not necessary to notify them because he said that you only need to notify the creditors who are on file at the time that you filed the petition and if the original creditors sell or transfer her account to another creditor, then that is immaterial.

I would like to get some feedback on this. If anyone knows whether it is necesary to send written notice to subsequent creditors, if you could post back on this, it would be appreciated.

Thanks.

[familyof7]

Just call them and say I filed bk on xx-xx-xxxx and here is my case # and my attorneys info. Yes they need to know but no they dont have to be added as long as the ORIGINAL creditor is on there.

[SinkingFast]

As Familyof7 said,.......... As long as the original acct and Creditor were listed, that's all that's needed. The debts will be included and Discharged if your Mom's BK goes OK.

"Bad" debts are often bundled and sold later. Again and again and again. Unscrupulous Zombie Debt Collectors prey on BK Filers years down the road. They count on people's lack of knowledge about the Law. Hoping that people will pay some, if not all, of the original debt. PAY DAY for the Zombie Debt Collectors!!

Just an FYI for you for your Mom,..........

Your Mom is currently under protection of an Automatic Stay. The fact that these Creditors contacted Mom to begin with is a violation of the Federal BK Law.

Once Mom's BK is Discharged, all debts included in BK come under a Permanent Injunction. No Creditors can ever try to collect on those debts. EVER!

[Kim02]

Familyof7 and Sinking, thank you for posting a reply. I appreciate it. I was worrying about this thinking that they could come back later and turn this into a judgement as their letters state they will do that and I hate for them to come back later and have a valid claim on the basis that they were never notified but from what you are saying, as long as the original creditor was included in the bankruptcy and was notified, then this subsequent creditor will not have any claim against her. I feel much better since that is the case. My mother has mentioned that she does not want me to notify the new creditors of her bankruptcy case as she is afraid they will dispute the bankruptcy and somehow win a claim against her so perhaps I should not notify the new creditors and just wait until she receives her discharge and then at that time if they send another notice I can mail them a letter referencing the law and inform them of her discharge. I guess there won't be any harm if we handle things this way, right? If anyone thinks this is a bad idea, if you could let me know. Thanks.

[familyof7]

But you should call them so they do know about it and so they will leave you alone just call and give them the bk info

[cathywhite4495]

I also think it's a good idea to give them the info so they'll leave you alone. Your mom doesn't need to worry about them disputing anything as long as there wasn't any fraud or big purchases, cash advances etc. They can't just dispute to be jerks, they have to have a valid reason.
Once some time goes by and the letters and phone calls stop, your mother will start feeling a lot better. I've actually started answering my phone again and I don't feel heart-stopping fear every time I check the mail. Hopefully, she will feel the same relief from stress!