I have been reading here that people have been sued by CC companies after their case was discharged. How does that happen? I thought the 341 was their only chance to try to protest/collect. I thought Bankruptcy protected you from suits. What's up with that?
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It really doesn't happen that often, and when it does, you simply file the discharge with the court and that ends the proceeding.
As for how it happens, typically, the debt was with a junk debt buyer, and sometime during the bankruptcy, the JDB sold the debt to another JDB. The second JDB does not know about the BK. -
Oh, OK. Thanks.Comment
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Here is what is happening in a nut shell. One of two things... The JDB had no idea you filed bankruptcy and it was all an accident. Or far more likely, the JDB filed the lawsuit hoping you would figure it was discharged, wouldn't bother to answer and they'd get a summary judgment which they'd start collection action on before the judge's signature was dry. When you are dealing with a JDB, you are dealing with a real bottom feeder. They buy these debts for pennies on the dollar, literally. Then try and collect 200% the actual debt from you.
I have one that has actually on a recorded conversation stated that he knows the debt is out of statute but he's filing the suit anyway because he can. Do you know what? He can legally file the suit, which he did. And even though the debt is clearly out of statute I have to defend against it. If you miss a deadline to answer interrogatories, admissions or whatever he will win a summary judgment.Comment
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As mentioned on several other posts on this forum, SOL is a defense that you must be prepared to use. Just because a debt is SOL does not mean they can't sue and attempt to collect. SOL is an affirmative defense and a very strong one I've heard. Others can chime in here.Comment
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