Collection After Chapter 7 Bankruptcy

Anonymous · ‎03-24-2008

Sept 06 I received my CH7 discharge. Prior to my BK, I had signed up of a yearly membership for website hosting and the fee would be billed monthly on my cc. Prior to the BK, I sent the company an email requesting for them to cancel my account. They responded back saying that their systems do not allow them to pre-enter a cancellation. They continued to charged my cc until my cc was cancelled due to the BK. I had 2 months left to pay on my yearly membership. They sent me a few emails saying they would send my debt to a collection agency and it would be reported on my credit report. I didn't take any action and never heard from them again. Nothing ever showed on my credit report either. Yesterday I received a call from a collection agency stating they had some business with me. I called them back to get the details and they were collecting on this debt I never payed.

I have no problem paying this debt ($20), but I don't want it for some reason to show up on my credit report now.

Also, the collection agency told me to make the check out to the company I originally owed and not to them. Is this normal? Should I pay this? Ask for more info?

Thanks for any advice you can give!

AM

Anonymous · ‎03-25-2008

This is from my own personal experience...

Call the collection agency and tell them you filed bankruptcy and it was discharged in month/year. (assuming the debt occurred before you filed and were discharged). Tell them they made an error and to remove it from your credit. (Be nice though so they will help you) They will ask for your case number. And thats it. Even if the debt was not included in the bk they only verify that in fact you were discharged.

Collection accounts are bought and sold so you will probably have collections still show up occasionally from debts that were discharged through your bk.

I had a few collections, that were included in my bk and that popped up after my bk, removed from my credit by doing this.

Anonymous · ‎03-28-2008

Actually, if the cc was not included in BK the debt is still owed... and the last thing you need is a CO reporting after BK. You will have a VERY difficult time re-establishing credit if this occurs. But, I sounds like it already has.

Anonymous · ‎03-28-2008

The way I read it the card was only canceled after BK filed - not included in BK.

Anonymous · ‎03-29-2008

The credit card was included the bankruptcy. How long does it usually take for a collection to show up on a credit report? Should it already be showing if I am receiving calls from a collection agency?

Thanks to everyone for the input!!

Anonymous · ‎04-02-2008

This is a good question. I can only assume the collection is valid. You entered a contract for services and the contract was not full filled. I would seek a pay-in-full in return for a deletion of the negative trade line.