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Post 13 Collection Account Sold?


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I filed ch 13 in last month and had my 341 meeting yesterday. All went fine. When I got home, the mail included a Collection letter from Midland Credit Management, Inc out of San Diego, Calif. The debt being collected was for a credit card that I had with Orchard Bank. Orchard was showing up on my credit report as a charge-off and they "advanced" my debt over to Household. So Household is also on my credit report and then they sold my loan to some coll. agcy. Even though I know I didn't have to, I included all three of these as part of my BK filing (After my plan is completed, they aren't getting anything anyway!).

My questions are these: Can this Midland CA continue to collect on a currently included in ch13 BK item (their letter said that they received it on 4/13)?

Also, if they are in violation of any BK laws, can I sue and get any $$ from them?

Thanks for your help!

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NO, they absolultely can NOT continue to try to collect, the automatic stay is in force until your discharge.

Call the CA and remind them that the account has been included in your bankruptcy, they are violating the automatic stay, and give them district, case number and filing date and your lawyers contact info. Then you tell them that if they don't immediately cease and desist ALL collection activity, including removal of any trade-line's they've recently placed, you will file a Motion for Contempt with the BK court and you will petition for sanctions, damages and court costs (which CAN all happen).

That should make them back off. Take that collection letter and show it to your attorney too.

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