Post Chapter 7 debt collection

[shrews228]

Hi ~

My husband and I filed a Ch. 7 and were discharged about a year ago. We listed USAA as a creditor of our credit card. We had a checking account overdraft of bogus overdraft fees that USAA turned over to a collection agency, which was listed on our discharge.

Fast forward to now...I mailed my insurance payment in September. USAA banking took the money from USAA insurance and won't credit my insurance account. They said that we didn't list USAA banking as a creditor, and therefore they are going to keep my insurance payment. The debt WAS discharged under the collection agency.

Do I have any recourse? How can I get my payment credited to my insurance???

Thanks in advance for your help.

Lynda

[jst4f]

I would think you have recourse. Send a letter, registered return reciept, demanding they credit your insurance account as they were listed in your BK. State they are collecting on a discharged debt and are in violation of your BK discharge order. If they do not comply immediately you will reopen your BK and haul them before the BK judge. If they refuse, get a lawyer and that them to court. BK judges do not like their orders ignored. After this is cleared up, change insurance companies.

[AngelinaCat]

Send a courtesy copy of that letter along with the paperwork you have from USAA, to your trustee, judge, and attorney, if you had one. All of these need to be certified with return receipt. It will be pricey, but well worth it.

A question just occurred to me: are you paying your insurance through an escrow account? If so, as soon as you can you need to move it if you are able. The BK on your record will cause you problems with your homeowner's insurance.

[tobee43]

i may use a different approach. first, i would send them a copy of the discharge and a copy of the page they were listed. along with that the instructional of exactly what a violation of a order of discharge is and that you will prosecute them to the fullest extent of the law, if they do not immediately correct and update their records. i would then demand they have 10 business days to respond in writing to reverse and fix the situation or you will pursue legal action and damages.

also, look for another insurance co immediately as you want NO lapse in your coverage.

best of luck to you!

[AngelinaCat]

I don't think the OP listed the original creditor. They listed the JDB it had been sold to, and because of that USAA was not honoring the discharge.

[angles]

we had USAA for banking and also insurance. we dropped the banking about the time we filed but kept the insurance. they never gave us any greif like this while making the insurance payments though.

[bcohen]

I don't think the OP listed the original creditor. They listed the JDB it had been sold to, and because of that USAA was not honoring the discharge.

If the debt was sold, then USAA does not have standing to collect, bankruptcy or not. In fact, once a creditor sells an account to a JDB, they are supposed to update their records to reflect zero balance owed, and must report this fact to the credit bureaus (or delete their tradeline).