HELOC sold to collection agency following Ch 7 discharge??

[LookingFrwrd]

We received a discharge of both 1st mortgage and HELOC (both with CW/BofA) in June '08. Made payments as long as we could (until Jan. '09) and have since walked away and are letting home go to foreclosure. We received notice of Lis Pendens filed July 30th.

The other day I receive notice that BofA transferred servicing of our HELOC to Real Time Resolutions effective September 20th. I understand that Real Time Resolutions is a collection agency and I'm wondering if it will be legal for them to contact me regarding a discharged debt.

Does anyone have any insight on this or past experience?? Is it legal for them to contact me to collect on a discharged debt (I don't think so) and if they do contact me, what recourse would I have if it is, in fact, illegal.

Thanks in advance!

[justbroke]

The other day I receive notice that BofA transferred servicing of our HELOC to Real Time Resolutions effective September 20th. I understand that Real Time Resolutions is a collection agency and I'm wondering if it will be legal for them to contact me regarding a discharged debt.

It's not illegal for them to send you notices letting you know the debt exists. To quote it better from 11 USC 524 (a)(2)... discharge bars the "commencement or continuation of an action, the employment of process, or an act, to collect, recover or offset any such debt as a personal liability of the debtor, whether or not discharge of such debt is waived."

In other words, they can't do anything to collect the debt, including coercive things like reporting to your credit bureau, or sending letters threatening any sort of action.

Many Junk Debt Buyers buy discharged (or soon to be discharged) debt for very little money, hoping that someone will pay the debt when they send the nice letter which reads, at the bottom "If you are in active bankruptcy or have received a discharge in bankruptcy of this debt, then this is not an attempt to collect a debt. This is a notice only."