HELP - Idiot Creditor got judgment on my 2010 DISCHARGED DEBT!!!

[chicagoannie]

Hi all - been a while since I've been here. Life's been pretty sweet post-BK (I filed in 2010.) I live cheap and under my means and that is fine with me. But I have an issue, and I am FURIOUS!!! Below is note I sent which outlines my issue. Anyone wants to chime in on what I need to do next, please feel free and thank you in advance!

]MACY'S LEGAL DEPT: 12-6-2013 Today I received notice via regular mail from my former employer of a wage garnishment by Marshall Field's/Target/Macy's on a debt from back in 2006 (your case # xxxxxxxx) This debt was DISCHARGED in my bankruptcy (case # xxxxxxx) filed back in 2010. All 3 creditor entities were named and notified by the IL Northern District Bankruptcy Court in my case for this single debt.

I received no notice whatsoever from Macy's, any collection agency, the courts or my former employer, until today that your company and/or its agents, were illegally pursuing this ancient discharged debt.

I am requesting that you provide me the name of the bottom feeding collection company which apparently sued and obtained a judgment against me years after this debt was discharged so I may go after them and Macy's under FDCPA law.

I am also requesting contact information from Macy's so I can follow up and make sure ALL reference to your illegal pursuit of discharged debt is IMMEDIATELY rectified with all 3 credit reporting agencies, the xxxxxxxx County Circuit Court, and my former employer xxxxxxx, Inc.

I will be sending same request via certified mail once I receive correct contact information for whatever personnel in Macy's Legal Dept will be handling this matter. I want a name, a mailing address and a phone number.

Regards,

[LadyInTheRed]

Did Macy's (or whoever the actual creditor was) receive notice of your BK? (Maybe that's what you mean by "all e creditor entities". Was your case a no-asset case?

If you want to know who sued you, find the case number on the notice you received from your former employer and look up the case on the court website if they have the info available online. If the court does not have case info available online, you will need to go to the court to look up the case.

The letter you sent may result in the creditor having the order vacated. If it doesn't, then send a letter to the attorney who filed the lawsuit with a copy of your discharge order indicating that the debt was discharged in bankruptcy, that you received no notice of the case and that if they don't have the judgement against you vacated you will file a complaint with the bankruptcy court for violation of the bankruptcy court's permanent injunction against collecting a discharged debt. If you want to be taken seriously, I suggest you keep the tone of your letter professional. Leave out insults like "bottom feeder". It may feel good to write, but it doesn't help.

Once the order is vacated, if the creditor doesn't immediately remove the judgement from your credit report, file disputes with the credit agencies.

[chicagoannie]

Hi and thanks so much. I checked my creditor matrix and my paperwork and yes, M-F/Target/Macy's were all included in my petition (their credit card division changed ownership several times over the past 7 years and I was careful to include them all) and sent notice by the BK court. I did figure out who sued and emailed the attorney. I heard back within an hour, also via email. This was the reply:

"Since this is your former employer, I am assuming that there are no funds being held by the company. However, upon receipt of your e-mail, we prepared and are filing a Stipulation to Dismiss. We are notifying Macy's/May Department Stores of the bankruptcy and we are closing our file on this matter."

I am going to research the difference between motion to vacate and stipulation to dismiss. Do you think they are offering the proper resolution?

[chicagoannie]

This is the verbiage on a Stipulation and Order to Dismiss:

All matters in dispute between the parties to the above entitled cause having been satisfactorily compromised and settled:

It is hereby stipulated and agreed by and between said parties, by their respective attorneys, that the said cause may be dismissed, without costs to either party, all costs having been paid.

It is further stipulated and agreed that an order pursuant to the foregoing may be entered of record without further notice to either party upon the presentation of this stipulation.

It is further stipulated and agreed that said dismissal shall be a bar to the bringing of any action based on or including the claims in this action.

Wherefore, the parties hereto pray that the court will enter an order dismissing this cause with prejudice.

I am not comfortable with this, especially since I bet somehow I will incur costs making sure this mess is cleared up. Plus I am naturally suspicious of collection attorneys. And signing this means I'd be agreeing to give up pursuing any FDCPA violation claim. It just doesn't "feel" right. Also, sorry about the BOLD type - my eyes are giving me problems and the dark font is easier for me to read.

[spidge]

I don't understand why you need to sign anything. It was handled in BK?

I would be suspicious too.

[LadyInTheRed]

I wouldn't be comfortable with that either. I'm not familiar
With IL civil procedure. But, in CA, the Plaintiff doesn't need the defendant's signature to dismiss a case. Also, if a judgment has been entered, that needs to be addressed. I think you should tell them that if they don't get the judgment vacated without conditions, you will file a complaint in the BK court. The complaint would not be under the FDCPA. It would be under the BK Code (section 524(a)(2)). You would claim willful violation of the courts injunction against collection of discharged debt. You may want to consult with a BK attorney on how to proceed.

[jst4f]

My reading of this situation is that they made a mistake, know they are in trouble and are trying to cover their collect a$$ with this stipulation. I would have a discussion with my BK attorney on how to deal with this. My gut feeling is that I would not be in your best interest to sign it.

[LadyInTheRed]

I just remembered an alternative term to vacating a judgment. The court can also set aside a judgement. I'm not sure if there is a difference between the two.

I really don't think you should have to do anything. If they filed a lawsuit to collect a discharged debt, they violated the permanent injunction on 11 U.S.C. section 524(a)(2) and they need to repair all damage. If they don't, what they may have been able to claim is an error becomes an obviousl willful violation. I wouldn't waive any right to bring an action until you are sure the proper procedures are being filed to correct this violation. I wouldn't sign anything without the advice of an attorney watching out for your interests. This attorney seems to be trying to take advantage of a pro-se filer. Let them know they can't do that and that if they force you to hire an attorney to get them to make sure all evidence of the lawsuit is erased from your credit report, your claim in bankruptcy court will include payment of your attorney fees.

[AngelinaCatHub]

This actually should be very simple to cure. By agreeing to stipulation with your signature you would have agreed to let them off the hook for their mistake. Hold them to the fire to have this set aside. Example: I got a default Judgement sent to me before I got a notice of a suit. I simply copied both items with a short note to the Judge and in one day the Judgement was set aside.

The crazy way laws are made are: You cannot just change the law, you must make another law to render the previous law void. Prohibition as example had to have a paper after it to "repeal". That amendment. Note that in reading many laws that have been changed, the old words are stuck through but not removed before the new wording is recorded in that law/statute. 'Hub

[AngelinaCatHub]

In above example, it is a courtesy for the lawyer/s to make documents for the Judge both for and against the complaint. This way, the Judge can either sign a dismissal if case is lost or the order if the case is won. Sometimes in a stack of papers, the Judge may sign the wrong item as my example was probably that case. Yes even a Judge can make mistakes. 'Hub

[tobee43]

first HI ANNIE!!!!!! glad things have been going pretty well for you.

whether you ask the court to side aside the judgement or vacate the judgement you still need to file a motion. if it were me i would go to an atty, does NOT necessarily mean you need to use you first bk atty. any good gp atty can take care of this for you. then i would go after their butts for violation of a court order, (your discharge order).

[keepsmiling]

I say, get the fine you are owed.
Easy money.
Gotta teach these scumbags somehow. $$$ is the only language they understand.

[justbroke]

I would have been all on top of this. Amongst the first things, like sending a VIOLATION OF PERMANENT DISCHARGE INJUNCTION letter to the attorney's for the creditor, would have immediately motioned to reopen my bankruptcy case. I would have sent the motion to reopen (for purposes of sanctions and a discharge violation) with the violation letter.

It is further stipulated and agreed that said dismissal shall be a bar to the bringing of any action based on or including the claims in this action. (from your post about the e-mail from the creditor attorney)

As already stated, they know they are wrong, and they know they are in deep trouble. Do not sign a stipulated agreement. The creditor should be filing a Motion to Vacate/Dismiss in the non-bankruptcy court. I think they are trying to cover their but and if you sign the stipulation, then you may never be able to pursue sanctions in the bankruptcy court (estoppel). I would not sign any stipulated settlement at all. But, that's me!

Maybe I'm not too nice. In this particular case, this is beyond egregious.

[tobee43]

I would have been all on top of this. Amongst the first things, like sending a VIOLATION OF PERMANENT DISCHARGE INJUNCTION letter to the attorney's for the creditor, would have immediately motioned to reopen my bankruptcy case. I would have sent the motion to reopen (for purposes of sanctions and a discharge violation) with the violation letter.


As already stated, they know they are wrong, and they know they are in deep trouble. Do not sign a stipulated agreement. The creditor should be filing a Motion to Vacate/Dismiss in the non-bankruptcy court. I think they are trying to cover their but and if you sign the stipulation, then you may never be able to pursue sanctions in the bankruptcy court (estoppel). I would not sign any stipulated settlement at all. But, that's me!

Maybe I'm not too nice. In this particular case, this is beyond egregious.

never too late for your excellent advise