Debt sold to Collection Agency as we filed

[Draky]

My wife and I filed chapter 7 on 9/11 and tomorrow is our 341 meeting. Today we received a letter from a collection agency about a debt that was included in the filing however the debt was from the hospital we originally filed on and not the collection agency that's now trying to collect. Had we known that the debt had been sold then we would have included that agency in our filing.
So now what do we do? We don't want a collection agency trying to collect a debt that we cannot afford right now, that would ruin the whole purpose of filing. Please help

[whipster1]

You can either send a notice of the BK to the CA or include them as a creditor for 26.00 filing fee. Better to spend the money to make sure anyone who thinks you owe them money is included.

[Draky]

Well, better safe then sorry. What form(s) do I need to fill out to get them added? We'll be going down to the court tomorrow for the 341 so we can file it before we go into the meeting I assume?

[Sham11801]

I wouldnt even spend the $ if you need to save it...the original credit is notified, they will/should notify the new collection agency...they cannot come after you regardless once you file since a stay is in place...once discharged, you dont have to worry about that debt since the original creditor was notified..

[Draky]

I wouldnt even spend the $ if you need to save it...the original credit is notified, they will/should notify the new collection agency...they cannot come after you regardless once you file since a stay is in place...once discharged, you dont have to worry about that debt since the original creditor was notified..

So I should just contact the original creditor (the hospital) and make sure they have the paperwork and also the CA to see if they have the info? I don't mind doing both to make sure that everything is going to be good, I just want to make sure that everything is clean when this is over and done with. I want that fresh start and a chance to make things better.

[liz417]

You don't even have to bother with the CA as long as you included the original creditor (the hospital) on your matrix. When you are discharged and the CA calls (if they call), all you need to do is send them a copy of your discharge letter.

P.S. I just reread your post, the collection agency is in violation of the automatic stay by contacting you!! I would definately contact them and let them know this!!

[Draky]

You don't even have to bother with the CA as long as you included the original creditor (the hospital) on your matrix. When you are discharged and the CA calls (if they call), all you need to do is send them a copy of your discharge letter.

Hmmm... I may call the CA just to make sure they have the info. I know for a fact that the hospital does have it because I called them about a bill I received a week after the filing and they advised they did have the paperwork. Now I wonder if it was sold after they received notice of my filing.

[liz417]

Hmmm... I may call the CA just to make sure they have the info. I know for a fact that the hospital does have it because I called them about a bill I received a week after the filing and they advised they did have the paperwork. Now I wonder if it was sold after they received notice of my filing.

Probably...some of my credit card debt was sold off to bottom-feeder collection agencies before I filed for BK. There were so many, I lost count, so I just listed the Original Creditors and the "last know CA" on my Matrix and was done with it.

As I stated in my previous post (added later), this collection agency is VIOLATING the automatic stay...they could be fined! I would call and let them know this ASAP!!

[jribe]

My wife and I filed chapter 7 on 9/11 and tomorrow is our 341 meeting. Today we received a letter from a collection agency about a debt that was included in the filing however the debt was from the hospital we originally filed on and not the collection agency that's now trying to collect. Had we known that the debt had been sold then we would have included that agency in our filing.
So now what do we do? We don't want a collection agency trying to collect a debt that we cannot afford right now, that would ruin the whole purpose of filing. Please help

you can ammend your filing to include them.. But either way, you've listed the orginal debt -which should cover you.

[aljohnson007]

I had a couple like that and sent a certified letter (return receipt) advising them that I had filed Ch7 (Case No XXX) and the debt is included. Never heard a word and they were not ever listed on my credit report. Don't waste $26 to ammend the schedules.

[momisery]

I have had the hospital call and we filed over a month ago. I know they were notified, but this hospital within the last 1.5 years has gone through out-sourcing their billing. Since I have heard stories of not getting bills for months then being sent to collection, and bills being wrong or being paid and showing due I am not really worried. I use to work for them and know people still from that old department. They have told me the dope on the billing over there. Hospitals are famous for not being good at paperwork, and they refuse to pay decent enough to admin staff to get people to stay. Yet they will pay nurses and LICENSED staff a ton to keep them. They seem to miss the fact that billing makes you or breaks you too.

[frogger]

The OC should notify the CA. The CA should pull it up on pacer and act accordingly. It's really not your problem anymore provided the OC was listed.

[OhioFiler]

I have had the hospital call and we filed over a month ago. I know they were notified, but this hospital within the last 1.5 years has gone through out-sourcing their billing. Since I have heard stories of not getting bills for months then being sent to collection, and bills being wrong or being paid and showing due I am not really worried. I use to work for them and know people still from that old department. They have told me the dope on the billing over there. Hospitals are famous for not being good at paperwork, and they refuse to pay decent enough to admin staff to get people to stay. Yet they will pay nurses and LICENSED staff a ton to keep them. They seem to miss the fact that billing makes you or breaks you too.

Obama's going to fix this for us. He'll run it just like Medicare.