Creditor letter the week after we filed?

[nomoneynomore]

We filed this past Monday, and today, received a letter from a NEW collection agency for one of the accounts we included in our ch 7. The letter is dated May 6th, so it was printed before we filed, but we didn't get it until today. Will this be included in the bk, since we did include the original company, or will we have to pay for this one? It costs $177 to amend our papers so I don't want to do that unless we must.

Thanks!

[NJYeah]

According to the PDF (Also posted in this forum) called 'Collections 101 A Training Manual For Entry Level Debt Collectors' by Kenneth R. Besser it says:

"In a chapter 7 no asset case, an unsecured debt is discharged regardless of whether or not the debt was included on the debtor's schedule."

Also, the following link says:

http://www.doney.net/faq_creditors.htm

After I received a discharge in Chapter 7, I discovered 3 creditors that I had know idea existed. These items did occur before I filed chapter 7. But, according to your website, if I did not add the creditor to my bankruptcy it's "tuff luck, you have to pay those debts." That doesn't seem fair. I never knew that the creditors existed.

It does seem rather harsh, doesn't it? That was the simple answer. It gets a bit more complicated and depends upon the kind of Chapter 7 case which you had, as well as which court your case might be in. Here is the complicated answer:

Many courts would hold that debts will be discharged in a no-asset Chapter 7 case even if they are not listed. There are two key phrases in that answer that require more explanation.

* Many courts. The bankruptcy code is not at all clear on this subject. While the trend appears to be that the unlisted debts in no-asset cases are discharged without any further action, the code has been interpreted in differently in many courts. Some courts would allow you to reopen the case to add a debt. Others would say that the debt cannot be added and therefore is not discharged.
* No-asset. In many Chapter 7 cases, there are no non-exempt assets which the Trustee may sell for the benefit of the creditors. These are called "no-asset" cases.

Courts say that unlisted debt is discharged in no-asset cases have carefully read Section 523(a)(3)(A). This section excepts debt from discharge if they were not listed in time for the creditor to file a timely proof of claim. The proof of claim is used by the Trustee to determine the proportion to divide the debtor's assets between the creditors. In a no-asset case, there will be nothing to divide and no reason to file a proof of claim. As a result, in no-asset cases the bankruptcy notice instructs creditors that they are not to file a proof of claim. Courts taking this position reason that since it will never be too late to file a proof of claim, a debt is not excepted from discharge because it has not been listed. Cases in which the courts reach this conclusion include: In re Madaj, 149 F.3d 467 (6th Cir. 1998); Judd v. Wolfe, 78 F.3d 110 (3rd Cir. 1996); Stone v. Caplan, 10 F.3d 285, 289, n. 13 (5th Cir.1994); and In re Beezley, 994 F.2d 1433 (9th Cir.1993). [8-99]

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So looks like would be best to ask your lawyer.

[magyar123]

I had the same problem. My attorney told me to ignore it, as the original creditor was already included in my filing. She (my attorney) just called the outfit and advised them that I was filing. That was the end of that. Never heard from that outfit again. Of course this was in 2004 (old laws).

[EveryDayAdam]

as long as the original creditor and debt is listed, that is all that is required. If someone else owns it now, then it is their problem.