Refiling Ch 13 to get rid of 'debt buyers'

[pkmj]

http://myvesta.org/articles/articles/89/1/Disturbing-Article-quotPrisoners-of-Debtquot/Page1.html

[MajorMike]

http://myvesta.org/articles/articles...uot/Page1.html

Wow!
I still don't understand why these companies would want to buy BK debt when it is uncollectable...

[woeisme]

I think they buy this junk debt for the same reason my health insurance always rejects every medical claim and makes you re-submit it a half dozen times before they pay... because even only 0.1% of the people ever just give up and decide it's easier to pay than it is to be harassed and have to constantly write and call and defend themselves, then they make more than enough money to cover the cost of the practice. Same reason spammers spam, 99.9% of us just delete everything from our e-mail without even opening, but there's that 0.1% who actually respond with their wallets.

[pkmj]

Exactly, someone is paying it for them to be making money. Whether it is ignorance, laziness or whatever, it does seem strange but I guess that's the way the world works!

[jgarton244]

There was a ruling recently in Austin, Texas in favor of the debt buyer. The judge ruled even though they bought the debt a less than face value, they also assumed the risk of default of debtor. They are entitled to their percentage of allocation in a BK 13 plan at full value of debt, not what they paid. So, it looks like rulings can go either way.

If you dismiss, as stated earlier, you could be responsible for all accrued interest, late fee's, penalties, etc that go back to your initial filing date.

[EndInSight]

If you listed all of your debts in your Chapter 13 originally, and the trustee is disbursing payments to the creditors who filed, then there is no other debt that you are responsible for.

Period. End of discussion.

What creditors and debt buyers do behind the scene is of no consequence to you. Once the BK discharge is in your possession, you do not owe anyone anything, outside of whatever debt you incurred outside of the Chapter 13 filing.

So these bottom feeders just need to be told to "Back Off" by sending a registered letter telling them to "cease and desists? (pardon spelling

Right?

Sorry about the cross post. I am in need of that "form letter".

Miss Posh

[maddog2112]

Dear Mary Irene, I am very interested in your posts as I am in a very similar situation. I filed in dec 06, and was at a 75 % payback which was recently increased to 80% after this years 8,500 tax refund that I sent to the trustee. THAT WASN`T EASY!!! Now he wants to increase my weekly payback by 60.00 a week. I was able to work alot of overtime last year, thats why my refund was so large.I make good money but the amount they want you to payback weekly is very unrealistic. I have a family of four and with every thing going up all the time I`m sure you can understand. My lawyers supposed to be writing up something to send to the trustee saying that we can`t afford the increase, but you know how that goes. I`m not very optimistic. If they force me to increase my weekly by 60.00 I may be forced to voluntarily ask to be dismissed, and try to settle with the collection agencies that are being paid by the trustee. My house and vehicle are being paid outside the 13 and all of my original cc debt of 120,000 was unsecured. I too have alot of the collectors you mentioned on my national data center account. Do you know if the unsecured accounts that have been sold would be able to add back interest and fees to the balance or would the settlement negotiating start off where the trustee left off.

[breathe]

I recently received notice that BoA has sold my BK debt to e-case and that i have till Aug 18 to object. What are the chances of an objection, any one have any experience with objecting to the sale of the debt?

[kornellred]

Dredging up this old thread for the benefit of newbies:

On the date of your Chapter 13 filing, all of your debts are listed. It does not matter who owns the debt at that time - the original creditor, or another entity who purchased the debt. And it certainly does not matter who buys the debt during the course of the Chapter 13 period, or why, or for how much. When, at the end of the Chapter 13, the debtor receives the discharge, there is no longer any debt to collect.

Period.

If all it was necessary to do to thwart a Chapter 13 discharge was to buy the debt of a debtor already in Chapter 13, then rest assured that there would be no such thing as Chapter 13.

[mybk]

Wow!
I still don't understand why these companies would want to buy BK debt when it is uncollectable...

Because I believe the rate for failure on Chapter 13 cases was something like 40% or greater. Basically you are playing a gambling game that they will fail to complete the filing and then you can collect the full amount against the original note. Worse case, you end up in another filing later and still collecting something again. I imagine there is a method that pays off here for them.