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Can collection be added during bankruptcy?

mdgolfpro
Valued Member

Can collection be added during bankruptcy?

I was discharged from chapter 7 on October 7th. I had a medical collections from tri-state added a week or so later. It does now report $0 balance and IIB but it was reported opened in July when I filed in June. Is this allowed? This just basically screwed any rebuild efforts because it's practically brand new. Any help would be great!
Message 1 of 5
4 REPLIES 4
0REDSOX7
Valued Contributor

Re: Can collection be added during bankruptcy?

Any debt that was present prior to your filing is included in your discharge - whether or not you listed it in your schedule.

Now, when was the date of service for this collection?

Did you get a dunning notice from the creditor?
BK Discharge 2/11/14

Currently in the garden.
Message 2 of 5
mdgolfpro
Valued Member

Re: Can collection be added during bankruptcy?

I should be more clear. The debt was included in discharge with the original creditor. It appears to have been passed to collections in July which is a month after I filed. It didn't show up on my cr until October post discharge. It originally posted as open with a balance but I then made sure it was changed to IIB & $0 balance. My question is should it have ever been added to my credit report since it was clearly not opened until a month into bk and the original debt was included in discharge. I haven't received any correspondence from them at all
Message 3 of 5
mdgolfpro
Valued Member

Re: Can collection be added during bankruptcy?

The date of service was 2012
Message 4 of 5
StartingOver10
Moderator Emerita

Re: Can collection be added during bankruptcy?


@mdgolfpro wrote:
I should be more clear. The debt was included in discharge with the original creditor. It appears to have been passed to collections in July which is a month after I filed. It didn't show up on my cr until October post discharge. It originally posted as open with a balance but I then made sure it was changed to IIB & $0 balance. My question is should it have ever been added to my credit report since it was clearly not opened until a month into bk and the original debt was included in discharge. I haven't received any correspondence from them at all

No. It should not have been added to your report 30 days after filing. It is a violation of the automatic stay that is put on as of your Bk filing date.

One letter from your bk attorney ought to get it removed.

 

If your Bk attorney won't write the letter, go to a consumer attorney that works for the debtor (not for creditors) and they will write the letter. You could try it yourself, but it has more weight coming from an attorney that specializes in these things.

 

BTW, there is a whole business of selling discharged debt (or debt in the middle of Bk) to CA's to collect when they know the debt is not supposed to be in any collections process at all! It is scandalous in my opinion. The CA is banking on you not knowing that it violated the automatic stay. There is no possible way that the CA can put the debt on your credit report after your filing date for a debt that was discharged (or in the process of being discharged). Hit the CA hard.

 

EDIT:  Here is a good link for you on getting rid of that collection and possibly putting some $$$ in your pocket http://www.bankruptcyinbrief.com/when-creditors-call-after-discharge/

 

 

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