NCO & bankrupcty

[dave999]

Hi all, I searched around but didn't see anything similar to this. I had a no asset chap 7 bankruptcy filed in 10/05 and discharged 1/06. NCO was a collector for a couple of credit cards that were discharged, so they were obviously notified about the BK. They recently started trying to collect on behalf of a medical bill that occurred in 4/2005 (which I had no idea existed when I filed). My BK attorney sent them a letter when I got the collection letter, but now 30 days after they sent it, they just posted it as an active collection on my credit report. Are they violating the permanent stay (or any other collection rules) by doing this?

Thanks.

[flacorps]

Perhaps.

It depends whether your local BK district views debts not included in the matrix as discharged.

Even clearly discharged debts are targets of collection these days. Google up a BusinessWeek article called "Prisoners of Debt" for the lowdown on that.

[dave999]

I'm not sure if this one even belongs to me (I'm thinking it's my ex-wifes). Any thoughts if I should try and make the CA validate it, or just go to the CRA with filings from my BK paperwork (which shows NCOs name & address on the schedule of creditors)?

[Robert Nashville/Savannah]

I'm not sure if this one even belongs to me (I'm thinking it's my ex-wifes). Any thoughts if I should try and make the CA validate it, or just go to the CRA with filings from my BK paperwork (which shows NCOs name & address on the schedule of creditors)?

"NCO" in and of itself is immaterial to the Bankruptcy...NCO is "free" to attempt to collect any debt from you that was not discharged by bankruptcy (even if there are other debts they were handling at the time that were discharged). By the same token, no CA can legally try to collect a debt that was discharged; who was or wasn't collecting the debt at the time of the filing is not the issue.

It's the legal status of the debt itself that's important - what is important to know here is was this debt discharged or not discharged by your bankruptcy?

When you know the answer to that question then you'll better know how to proceed...I'd advise you to review your bankruptcy paperwork and/or discuss this with your attorney.

I don't know where to go with you statement that you aren't sure if the debt belongs to you or not..do you have specific reason for that uncertainty or is that more wishful thinking?

[dave999]

My BK attorney indicates that the bankruptcy court here considers that all debts are discharged in a no-asset case, because there is no harm to creditors even if they weren't listed & notified.

The question as to if it's actually mine is legit, since it's a medical bill that is during a time period when my wife (now ex-wife) was in a car accident. I'm 99% certain it is hers, as I've never received a bill otherwise for this that I recall, just the collection notice. I don't recall signing anything at the time indicating I would be responsible for paying, so that's why I was curious about validating the debt.

That leaves me with:

1) The debt is discharged

2) NCO is trying to collect

3) NCO was notified previously of the bankruptcy, although not for this specific debt.

This wasn't a TL on my credit report at all previously, so ideally the best case scenario is getting it completely off, not listed as "included in bankruptcy" as that would probably still ding me some points.

So do I try to strong arm them right away with a letter indicating they are violating the permanent stay and to remove it completely or else I sue? Or start with just having them try to validate?

[Robert Nashville/Savannah]

My BK attorney indicates that the bankruptcy court here considers that all debts are discharged in a no-asset case, because there is no harm to creditors even if they weren't listed & notified.

The question as to if it's actually mine is legit, since it's a medical bill that is during a time period when my wife (now ex-wife) was in a car accident. I'm 99% certain it is hers, as I've never received a bill otherwise for this that I recall, just the collection notice. I don't recall signing anything at the time indicating I would be responsible for paying, so that's why I was curious about validating the debt.

That leaves me with:

1) The debt is discharged

2) NCO is trying to collect

3) NCO was notified previously of the bankruptcy, although not for this specific debt.

This wasn't a TL on my credit report at all previously, so ideally the best case scenario is getting it completely off, not listed as "included in bankruptcy" as that would probably still ding me some points.

So do I try to strong arm them right away with a letter indicating they are violating the permanent stay and to remove it completely or else I sue? Or start with just having them try to validate?

You don't have to have "signed" anything (or even be aware of) a spouse's or child's medical bill meaning that whether you believe it's your debt you may well be legally liable for it.

Except for the issue of the bankruptcy.

If your attorney is certain that this debt was "discharged" then there is no reason to pussy-foot around with NCO I'd tell them exactly what they can go do with themselves and if the didn't remove the tradeline instantly then turn them over to the bankruptcy court for your district or sue them or both - frankly, I'd say your attoney should be taking care of this...that's why you pay them their outrageous fees.

[Florida_Bronco]

I agree with Rob on this one. Your lawyer is telling you that the debt was effectively discharged with the BK so whether it's legit or whether you were actually liable is completely irrelevant.

You, or your attorney, need to take a hard line stance with NCO and get this tradeline removed and/or collect the money owed to you for FDCPA violations.