Beling sued by Velocity

[bling32]

For the past few days, I have been getting solicitations in the the mail for filing bankruptcy from several attorneys. I simply threw away the first few without opening them b/c I knew I had already filed. So, today I decide to open one and it states that I am being sued by a creditor and they can help. It gave the name of Velocity and a case number. So, I quickly call my local courthouse and this is indeed true. So, I ask who is the creditor and they say Barclays. I had a credit card with them and my attorney pulled my credit report and it showed zero balance, account transferred/sold. I had not been contacted by a collections agency so I called Barclays during the bankruptcy and they would not provided me with the information on who it was sold to. So, anyway I contact the attorneys office for Velocity and tell them I filled and give them my attorney's name and number and my case number. They say they were not included and I explained to him what happened. I also told him that I would contact my attorney's office about the matter.

I called and left a message with my attorney. The case is already confirmed. This is a debt prior to the filing. Can it still be added to the plan at this point? I know I will be required to pay a fee. I want to add it so I have no responsibility since I am in a 0% plan.

[drowning123]

You are fine as long as you listed the original creditor. You did list Barclays, correct? You don't need to add Velocity. Experts, please correct me if I'm wrong. This means that you'd be paying twice on the same debt.

[bling32]

No we did not list Barclays b/c it was showing a zero balance. And, we could not find out who they sold the debt to at the time of filing. So, I need to add this creditor. Is it still possible?

[bling32]

Ok..... I was just served by the sheriff on this matter. I will be blowing up my attorney's phone in the morning.

[drowning123]

Found this on the Net. "...an omitted creditor is prejudiced by not being listed in the original filing, because had they been listed, they would have shared in the distribution to unsecured creditors. Debtors who find themselves in this situation should have the bankruptcy case amended to add the omitted creditor so they can share in any distribution. A creditor claim that has been omitted and not provided for in the Chapter 13 will survive the entry of discharge and the debt will still be collectible against the debtor."

[bling32]

Thanks! I am trying not to add any debts during the plan so I plan to have it taken care of. I know the attorney will probably want to charge me additional fees for doing so. the charge is almost $1200.00 so it is worth paying.

[drowning123]

Good luck!

[rdmccaffrey]

The 2 scumbag debt buyers that were suing me is what made me go file a chapter 13. neither of those even filed a claim so they aren't getting anything.

[bling32]

I agree they are scumbags. This debt has been purchased by about 4 companies from my research tonight. I keep all mail and the last owner that had was Arrow in 2008. I was never billed by Velocity. They went straight to the lawsuit I guess. During the bankruptcy, I called the original creditor, Portfolio and Arrow and they all said it was sold and no balance. I was unable to find another collection agency owning it on my credit reports and I was never billed. I thinking they were lurking hoping I would not list them so they could get a garnishment on me. This is really low.... garnishing while you are already in bankruptcy. So, I guess I was certain to have some bumps in this journey. Hopefully, I can get out of this debt without having to pay too much.

[rdmccaffrey]

I wish you the best. I hope it works out.

I hope there is no hole in the laws theyve found to collect outside of your case. And also, I hope they aren't doing the same thing to mine without me knowing about it.

[newbie2]

You will be fine. Have your attorney amend your filing to include them. You did nothing wrong and once it's amended it will stop that debt buyer in their tracks.

[bling32]

I spoke with the paralegal today. Explained what happened. They verified my story by looking at the credit reports the attorney obtained at the initial meeting. Told me to fax over papers that I was served. Then, called me back and I was required to pay $26 to have the item added to my plan. I was told I might have to sign so new documents. I had to remind him that I am already confirmed. So, I hope this takes care of it. But, I was assured they would stop the legal proceedings. I will keep you posted.

[forgotten]

I spoke with the paralegal today. Explained what happened. They verified my story by looking at the credit reports the attorney obtained at the initial meeting. Told me to fax over papers that I was served. Then, called me back and I was required to pay $26 to have the item added to my plan. I was told I might have to sign so new documents. I had to remind him that I am already confirmed. So, I hope this takes care of it. But, I was assured they would stop the legal proceedings. I will keep you posted.

You should be fine as long as the debt was incured before you filed, you add the creditor, and your plan can support them being paid the same percentage as everyone else.
If you are in a 0% plan I don't see that as being an issue no matter how far in to the case you are.

[bling32]

Update: I checked pacer today and my attorney filed the amendment to add Velocity to my plan. I also called the local magistrate to see if the case had been dismissed and it is still showing active. So, I call the Velocity's attorney and again advise them to dismiss the law suit since the amendment to add them has been added. They said no problem. I know that I have 30 days to respond to the summons and I am keeping track b/c I don't want a default judgement on my credit reports even though they won't collect on it. I will give them until couple a days before the 30 day mark and if no response I am going to have my attorney contact them to dismiss the case.

[drowning123]

Thanks for the update.