Debt coming out of the woodwork after discharge? Stupid Columbia House!

[ugh]

My BK7 was discharged 8/31/06. Now, out of no where... I get a bill from a collection agency regarding a past BMG account. However, this account was actually from Columbia House Video. This account is from 2004. The amount is only $33. Now, I don't know how to handle it. Why did they wait all of these years to contact me? I did not even know I had a remaining balance. However, it may be valid as I did use the service quite a bit.

It's odd that it states BMG instead of Columbia House.

I'm assuming BMG & Columbia House is the same company? My husband did include a Columbia House account in the BK7. However, it was a seperate account.

Does anyone know how I should handle this to make sure nothing is reported on my credit reports?

Should I let BMG, Columbia House or the collection company know that this was included in our BK7. (Even though it was really a different account? Do they actually receive account numbers and stuff when you file BK7?)

Should I pay it?

Please help! Thanks!

[monlyba]

hmm, i've owed one of those companies (can't remember which - i always thought they were separate?) for years now and nothing from them has ever showed up on my credit report even though i get collection agency letters occasionally. i've heard people say that nowadays if a creditor pops up like that you can just mail them a copy of your bk discharge letter or whatever and that should be enough for them to count it in their records as included in bankruptcy.

[FilingOnMyOwn]

I wouldn't worry about it. Unless you for some reason provided these people with your ssn#, it would never make it to your credit reports.

[lrprn]

My BK7 was discharged 8/31/06. Now, out of no where... I get a bill from a collection agency regarding a past BMG account. However, this account was actually from Columbia House Video. This account is from 2004. The amount is only $33. Now, I don't know how to handle it. Why did they wait all of these years to contact me? I did not even know I had a remaining balance. However, it may be valid as I did use the service quite a bit.

It's odd that it states BMG instead of Columbia House.

I'm assuming BMG & Columbia House is the same company? My husband did include a Columbia House account in the BK7. However, it was a seperate account.

Does anyone know how I should handle this to make sure nothing is reported on my credit reports?

Should I let BMG, Columbia House or the collection company know that this was included in our BK7. (Even though it was really a different account? Do they actually receive account numbers and stuff when you file BK7?)

Should I pay it?

Please help! Thanks!

For now I'd hang on and see what happens. If they start to get pushy, write them and ask for proof of the debt. If they can't produce it, then you don't owe a thing . And if they do produce it to your satisfaction, find out exactly what late fees and penalties they are piling on and the total they say you owe and get it in writing before sending them a single penny.

[razorguns]

pay $33 and tell 'em to buzz off.

r

[kcj]

Ask them for proof of debt. If they supply it, send them a copy of your discharge paper and tell them to take a hike.

[Minnymouth]

Save yourself a lot of grief, paperwork, postage, pay it and go on, its a different account that you left off your petition........

[ugh]

I would be happy to pay it, so they don't continue to bother me. But, I have heard that if you pay a past debt it may all of a sudden appear on your credit report. Is this not the case? Thanks.

[Bobby'sGirl]

BMG took over Columbia House

Sometime last year Columbia House "folded" and BMG took over the operations. I'm guessing they are trying to collect on old debts. I'm with Minny on this one...pay it if you think it is valid and just make sure you have proof of receipt from them, etc. You could try and wave the BK papers at them, but why keep wondering if it will reappear again with legal fees added... Neither Columbia House or BMG has ever reported on my credit reports, nor do they check credit before allowing you to sign onto their "clubs." That adds a layer of cost to the operations for the company that Columbia House never used.

[Jman30]

If it was more money, I would say fight it. Wave the BK paperwork at them.

But since it is $33, I would just pay. Send them a money order so they don't have your checking account number. Get a receipt and be done with it. Even if it did show up on your credit, and everyone here says it won't, I can't imagine it would be difficult to have it removed.

[razorguns]

If it was more money, I would say fight it. Wave the BK paperwork at them.

But since it is $33, I would just pay. Send them a money order so they don't have your checking account number. Get a receipt and be done with it. Even if it did show up on your credit, and everyone here says it won't, I can't imagine it would be difficult to have it removed.

it would cost them MORE to put it on the cr. And it would be pointless if they got paid. So that won't happen.

Can't be that cheap in life sometimes. Might as well pay it for piece of mind at least.

r

[brokentex]

it would cost them MORE to put it on the cr. And it would be pointless if they got paid. So that won't happen.

Can't be that cheap in life sometimes. Might as well pay it for piece of mind at least.

r

You would be surprised. My wife once had a deragotory put on her credit for an unpaid medical bill of $2.71. After it was on the the CC companies lowered all her credit cards limits because of it and her fico scored dropped about 40 points.

[razorguns]

lowered all her credit cards limits because of it and her fico scored dropped about 40 points.

well that clearly shows how screwed up the FICO formula really is.

How can someone be deliquent on $2.41??? Someone chose to ignore that bill on principle?

Looks to me the creditor get pissed and put it on there to spite her.

r

[lrprn]

well that clearly shows how screwed up the FICO formula really is.

How can someone be deliquent on $2.41??? Someone chose to ignore that bill on principle?

Looks to me the creditor get pissed and put it on there to spite her.

r

Remember the FICO system is not there to be helpful or friendly to debtors. Its sole purpose is to give creditors a quick general snapshot of our credit history to see what kind of financial risk we are. These days creditors don't care about much of anything except getting paid what they are owed....even if it's just $2.41. When we borrow and don't pay, we open the door to all kinds of credit abuse that is perfectly legal under the current creditor-friendly laws.

[brokentex]

well that clearly shows how screwed up the FICO formula really is.

How can someone be deliquent on $2.41??? Someone chose to ignore that bill on principle?

Looks to me the creditor get pissed and put it on there to spite her.

r

Actually it was an error. She had about $2000 worth of medical bills. We paid them off or thought we did according to the hospital. We recieved a statement for for the 2.71 from the local hopsital. Wrote them a check. Thought all was good. Moved to a new house. Hospital screwed up and did not enter that we paid on her account. They turned it over to a collection agency. Apparently mail is only forwarded for like 3 months because we never got any notice of any of this. One day a letter came from Chase and said they were cutting limit because of deragotory on her credit. We were confused because she had a 720 fico and had never been late on anything. Pulled a report and her score was only 680 and sure enough there was a 90 day past due on there for $2.71 from that medical bill. had to go to the bank and get them to find the check that showed we had paid it. Then we had to write letters to all credit agencies in order to get it removed off of her report. Finally we had to contact all CC companies that had lowered her limits and show them proof of what happened. Biggest pain in the butt over $2.71.