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Can a Collection Agency file a claim on my Chapter 13 a year into my plan?

visionsdivine
New Contributor

Can a Collection Agency file a claim on my Chapter 13 a year into my plan?

My background: Filed chapter 7 in October 2014. Discharged February 2015. Ran into some financial problems that finally hit a spike last summer, so I filed Chapter 13 in August 2019. Had my hearing of creditors at the beginning of October 2019. So I'm about 9 months into my Chapter 13 payment plan with two more years to go. (I'm on a 3-year plan with a low payment since I didn't owe much to begin with. I just couldn't afford to get my car repossesed). 

 

Today, I received a letter from the trustee saying that a collection agency has filed a claim in the amount of $1,200 on my plan. The letter indicates that they filed it more than 90 days after the meeting of creditors (is this some magic number?) and if I want to object to it, I can. Otherwise they'll start getting payment. 

 

Are they allowed to do this? I have a feeling one of my original creditors sold the debt to this collection agency. I e-mailed my attorney, but I haven't heard back from him yet, and I want to get another opinion anyway.

Message 1 of 5
4 REPLIES 4
Justme79
Frequent Contributor

Re: Can a Collection Agency file a claim on my Chapter 13 a year into my plan?

OBJECT IT! ASAP

Chapter 13
Date filed: 3/17/20
Meeting of the creditors (341): 5/20/20
Confirmation hearing: 6/11/2020
Deadline for filing claims: 6/17/20
Plan confirmed: 7/2/2020
Deadline for filing claims (Government): 9/14/20

Scores as of 05/08/21 (MyFICO Monthly Subscription/updates on the 8th of every month)
Equifax 666
Transunion 634
Experian 637

Open Accounts
Great Lakes (Student Loan) Pd Never Late - Perfect History/will not update until PIF $3,750 balance at $140 per month
Target (Survived Bankruptcy) Pd Never Late - Perfect History $2,300 limit/$0.00 Balance
Cartier (Survived Bankruptcy) Pd Never Late - Perfect History $8,000 limit/$0.00 Balance
NFCU Amex (AU) $25K limit/$10K balance (removing soon)
NFCU Secured Card (Trustee Approved) Card Graduated to NFCU Cash Rewards (Unsecured) $2K limit/will PIF each month before statement cuts
TD Bank Secured Card $500 limit/will PIF each month before statement cuts

All closed accounts are reporting correctly with $0.00 balance

Message 2 of 5
Mjhall85
Frequent Contributor

Re: Can a Collection Agency file a claim on my Chapter 13 a year into my plan?

if it's a regular creditor then object it as they have 90 days if it's a government body they have 180.


@visionsdivine wrote:

My background: Filed chapter 7 in October 2014. Discharged February 2015. Ran into some financial problems that finally hit a spike last summer, so I filed Chapter 13 in August 2019. Had my hearing of creditors at the beginning of October 2019. So I'm about 9 months into my Chapter 13 payment plan with two more years to go. (I'm on a 3-year plan with a low payment since I didn't owe much to begin with. I just couldn't afford to get my car repossesed). 

 

Today, I received a letter from the trustee saying that a collection agency has filed a claim in the amount of $1,200 on my plan. The letter indicates that they filed it more than 90 days after the meeting of creditors (is this some magic number?) and if I want to object to it, I can. Otherwise they'll start getting payment. 

 

Are they allowed to do this? I have a feeling one of my original creditors sold the debt to this collection agency. I e-mailed my attorney, but I haven't heard back from him yet, and I want to get another opinion anyway.


 

Chapter 7 filed 2/3
Discharged 6/30

Fico 8
EQ 681 TU 671 Ex 665
Fico 4 TU 690 Fico 5 702 Fico 2 693
Message 3 of 5
visionsdivine
New Contributor

Re: Can a Collection Agency file a claim on my Chapter 13 a year into my plan?

My attorney finally emailed me back. It was an Amazon store card that they sold to a collection agency and was refiled as an amended claim. Because my Amazon card was filed in my Chapter 13, he says it's fine. Does this sound right?

Message 4 of 5
despritfreya
Frequent Contributor

Re: Can a Collection Agency file a claim on my Chapter 13 a year into my plan?

You need to discuss this with your attny. 

 

A Proof of Claim is deemed "allowed" until such time as it is objected to and the objection is sustained.  HOWEVER, in general, there is no reason to object to a late filed general unsecured claim UNLESS your Plan requires you to pay 100% of allowed claims. 

 

If you are not paying 100% of allowed claims why would you care who get a piece of the pie that was set up for general unsecured creditors?  That pie does not increase as a result of an additional claim.  The only thing that happens is the other general unsecured creditors get a little less of the pie since there is an additional mouth to feed.

 

So. . . are you paying 100% of all allowed claims?    If not, my guess is that your attny is going to tell you not to waste your time.

 

Des.

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