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Hey guys i got a letter in the mail from Arrow Financial who is trying to get $918.00 from me on a JC Penny account i had in 95. I got this deleted from my reports about 2 years ago. The ral amount was actually 421, how can they collect? i do believe it was filed under ch7.

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Short answer - yes!

Unless you request in writing that they cease collection efforts, technically they can continue to try and collect as long as they want. Legally though, in terms of filing suit, the CA/Courts are bound by the statute of limitations in the state in which your reside! According to your screen data, you are located in Arkansas. A quick lookup of the "Statute of Limitations" (see link at top of page), tells us that in the state of Arkansas, the SOL for written contracts is 5-years, 6-years for Promissory notes, and 3-years for Open Ended accounts. you can visit Why Chat's website for more infromation on how to deal with collectors in regard to debts that are beyond the SOL - http://community-2.webtv.net/Y-Chat/WhyChatsCredit/


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Verify whether or not it WAS included in a CH 7 bankruptcy. If it was, then you can nail them for violations of the bankruptcy law. It is ILLEGAL for them to attempt to collect on a discharged debt and if you catch them at it and want to pursue it, you can slam them from Federal BK court with whopping fines and sanctions - as well as damages !!

If it was included in a BK, write them a NASTY letter reminding them they are violating the permanent injunction of the BK discharge and if they do not immediately cease and desist ALL collection activities, you will file a motion for contempt with your BK court !

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I just looked over the list of creditors that was incl in my bk. Yes JC Penny's was definitely on the list. Of course the ca has a new account number and balance of 912.90.

I need the money right now. Tell me what to do or letter to send.

Capitol One also re-aged some accounts from 95.

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Woo hoo.. Arrow trying to illegally collect on a discharged debt !!!

What you need to do is:

1 - Make a copy of your creditor matrix, block out everything except the JC Penney entry, circle the case number and filing date.

2 - Make a copy of your discharge notice if you have it, circle the date.

(Make them BIG RED circles)

3 - Get a copy of the Cease and Desist letter here and modify it with the following:

Add in a reference to the US Bankruptcy Code (as a reminder to them)

Sec. 524. - Effect of discharge

(a) A discharge in a case under this title -

(2) operates as an injunction against the commencement or continuation of an action, the employment of process, or an act, to collect, recover or offset any such debt as a personal liability of the debtor, whether or not discharge of such debt is waived;

Then you go on to say that per the attachments (creditor matrix and discharge notice), the debt they are attempting to collect was included in your 1995 CH 7 bankruptcy which was discharged on xx/xx/xx. Per Section 524(a)(2) of the US Bankruptcy Code, they are in violation of the Federal Bankruptcy laws by attempting to collect on a discharged debt.

Then you tell them that if they do not IMMEDIATELY CEASE AND DESIST all collection efforts, including any reporting to CRA's, that you will not hesitate to file against them a MOTION FOR CONTEMPT AND REQUEST FOR FINES AND SANCTIONS with the US Federal Bankruptcy Court, District xxxx (your state and district). In addition to your request for fines and sanctions, you may also request actual damages (which you are allowed to do).

You could also mention that its also a violation of the FDCPA to collect on a discharged debt, so you could get them for more money in a separate suit for FDCPA violations. If this is on your credit report, you can go for FCRA violations - reporting inaccurate information (its NOT a valid debt !) and of course go for damages for hurting your credit.

I'd make the emphasis on the BK Court Contempt motion, it bears a LOT of weight. To do this, you'd have to petition to re-open your case, but with any luck rubbing their noses in their blatant violations of the BK law will be enough to get rid of them.

In this case, you might also want to file complaints with the FTC, your state's AG, and one with the ACA.

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