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CA bought bk 13 account while payment plan, is this legal?


fedup2004
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I noticed a CA on my credit report named Sherman Acqusitions that is reporting on account that was filed in Chapter 13 bankruptcy 2 yrs ago. I am still under the payment plan, so I called them to find out how they got the account. I was told that they purchased the account from OC and when I questioned how they could do that when the account currently under Chapter 13 payment plan, they claimed they could and that as long as they didn't contact me about the debt that they were not in violation of the FDCRA or FCRA. At that point I disputed the account with the CRA, to no avail. Next I requested debt validation from the CA, but they never responded. With that said, I have a couple of questions before I attempt to resolve this further.

1. Was it even legal for the OC to sell this account while it's still under the bk ayment plan? Does this constitute continued collection action by the OC therefore, making them in contempt of the automatic stay? If so, should I contact them instead of the CA?

2. Due to the CA's failure to validate the account, are they now obligated to remove this account from my credit report? If so, how do I get them to do it?

Thanks for any advice you can provide.

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1. Was it even legal for the OC to sell this account while it's still under the bk ayment plan? Does this constitute continued collection action by the OC therefore, making them in contempt of the automatic stay? If so, should I contact them instead of the CA?

Unfortunately, its legal for an OC to sell the debt even if you are in a repayment plan. Is this bill being paid in your plan and if so, at what percentage ?? Selling the account isn't collection action, but REPORTING it sure as hell does. Reporting to the CRA's IS considered collection activity and that does violate the automatic stay.

2. Due to the CA's failure to validate the account, are they now obligated to remove this account from my credit report? If so, how do I get them to do it?

This would only work if you have concurrently disputed it with the CRA's and it came back as verfied. They are not obligated to remove it from your reports, but it SHOULD be marked as 'in dispute'.

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Thanks for replying. :D

Actually, Fingerhut never filed a claim during the bk, so even though it was included in the bk, it shows a zero balance and they will get nothing from my payment plan. From my understanding (per my former attorney), since they didn't file a claim they can't go after me later once the bk is discharged. But I'm not sure what they can do until then. I'm thinking since it was included in the bk, it's treated like all the other accounts that are being paid and should fall under the same guidlines. My former attorney and I no longer speak, so I really don't know much else.

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