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Sold during BK discharge


Halbard
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I haven't seen this one yet, and the law sites I've tried so far are no help....

Long story short, I BK'd this last year, but found myself in a situitation... one of my creditors, who I declared on, sold my debt to three other companies (somthing which I thought was illegal to begin with...) and now I have three companies reporting my debt as new, post Bk debt. They will not answer letters, and have not contacted or responded to me in any way. I understand (thru reading on this site.... about the only helpful resource I've found so far...) the companies are not suport to do this, but what is my recourse.... I have no communication from these companies, so therefore no "proof" of wrongdoing.... how would I go about disputing these items? What is the law reguarding sale of debt during the discharge process of a BK?

I am new to the repair process.... I almost always used cash, untill madical problems with my second child, which dug a really deep hole. Have recently realized how badly this credit thing was screwing me, and am leaping on my repair with a vengance... but this has me baffled, as it dosen't seem to fit any of the "regular" catagories.

thanks in advance for any advice you have for a noobie....

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I had a similiar problem with Chase, so I wrote them the following letter:

They changed the TLs to IIB...

<date>

Credit Card Co. via Certified Mail: xxxx xxxx xxxx xxxx xxxx

Some street

Some city

Re: Account numbers;

me #xxxxxxxxxxxxxxxx

wife #xxxxxxxxxxxxxxxx

Our Street

Our City

To Whom It May Concern:

It has come to our attention that your organization is reporting these two credit card accounts to the various Credit Reporting Agencies as “ Transferred/Account Charged off” or “Profit and loss writeoff”, with varying dates of last activity, dates of charge off or transfer, as well as differing amounts.

According to our phone records, we were last contacted regarding these accounts by someone who would only give the name “Terry” on <some date>. This person identified themselves as representing your bank. After “Terry” used abusive and foul language, threatened legal action stating that we would “wind up in jail” for not paying these debts, and suggested that a Collection Agency would be coming to our facilities to “tag assets” (clear violations of the Fair Debt Collection Practices Act) we informed this individual that we would be filing personal bankruptcy within 6 weeks and gave him the name of the lawyer were we dealing with. We did indeed file the required paperwork on <our bk 7 date>.

Therefore, if you did transfer these accounts to someone else after this date, you did so with the full knowledge that we would be declaring bankruptcy and that these debts would be uncollectible. This could also be viewed as an attempt to circumvent the Bankruptcy Laws of the United States, and / or “punish” a consumer in violation of the Fair Credit Reporting Act.

Accordingly, we hereby request that you provide us with written documentation, within 15 working days of the receipt of this letter, stating the exact date on which these transfers were made and identifying the parties (complete with mailing address) to whom they where transferred. We will then contact them to inform them that the debt they were sold is uncollectible.

If by chance, the information you are reporting to the credit bureaus is inaccurate, or, you cannot provide the requested documentation then please transmit the appropriate information to the credit bureaus to have these debts either removed from our credit reports or listed as “Included in Bankruptcy”.

Respectfully,

Me…

The CA's TLs were removed, and the OC changed to IIB. Not the greatest, but better than two dings...

_________________

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OOOOHHHHH.... I like it....

Thank you... I shall draft somthing like that tonite, and send it tomorrow.

Since I have problems with the debt originatior as well (actually, my last conversation with "Chris" from the OC ended with threats of lawsuits and jail....) should I also CC the letter to the CRA's, or different format for them?

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First of all, it is NOT illegal to sell debts while you're in BK or to sell off accounts that have been discharged. It may be stupid but its not illegal.

Second, ANY negative reporting on a discharged debt is a violation of the permanent injunction of your discharge and you can nail them for it thru the BK court. They are in contempt of a court order (your discharge).

Send them a letter that tells them they are in violation of the BK law, and if they don't immediately cease and desist ALL collection actions, including removing anything they've reported to the bureaus, that you will not hesitate to file a Motion for Contempt and Request for Sanctions against them in your district's BK court. If they don't back down then they're complete idiots. There IS case law to support this negative reporting on discharged debts as a violation so you do have something to use against them. Look in the stickies in "Is There A Lawyer In the House' forum for case law and fighting FUSA.

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First of all, it is NOT illegal to sell debts while you're in BK or to sell off accounts that have been discharged. It may be stupid but its not illegal.

This violates the automatic stay, so I'd say it's not legal. Any sale to another party would be done so with the intent that collections continue in violation of the stay.

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Thats why I was wondering about this debt.... the law sites I found are inconclusive, full of jibberish which is difficult to decifer....

Given the question of legality, would I be better off checking with my lawyer, and retaining him for dealing with this debt, or should I proceed with the letter to the OC, and see what happens?

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