Collection agency trying to collect on a discharged claim

[memuzz]

My chapter 13 case was successfully discharged in July 2012. I haven't had any problems from the creditors listed on the claim until today.

Today, I received a bill from a collection agency that bought a debt from Verizon Wireless back in 2010 while my case was open. Verizon Wireless was listed on my claims list as an unsecured debt. That means Verizon sold the debt to the collection agency while the case was open and under bankruptcy protection. We only use prepaid cell phones and haven't used a national carrier since we had Verizon in 2006. So I know this is definitely the Verizon claim on my case.

What steps should I take to stop this collection agency? Should I contact either my bankruptcy attorney, chapter 13 Trustee, or the bankruptcy court?
When I realized that Verizon sold the debt to a collection agency I got a little upset. Did Verizon violate any laws selling the account to a collection agency when the case was open? Our credit score was near 700 last November. Since they are trying to collect the debt again it lowered it significantly! We are waiting to purchase a home in 2015 and we just purchased a brand new car in October after the old one nearly died on us. I am being very careful about credit with paying bills on time. I thought after the discharge my financial life would get a little easier and now this. Thanks.

[AngelinaCat]

Write a Cease and Desist letter to Verizon, telling them that this debt was discharged in your BK. Include a copy of your paperwork showing your Discharge, and tell them that they are in breach of BK law, and if they persist in trying to contact you, you will bring them to court. The exact law citation will be somewhere on your Discharge document, so look that up and include it in your letter. Also include a copy of their notice showing that they are trying to collect from you.

Send copies of this letter and documentation to the original creditor, Verizon, the JDB, and include courtesy copies to your lawyer, trustee, and judge.

Send this by certified mail, with return receipt requested to Verizon and the JDB. That will cost about $12.00, but is well worth it. The courtesy copies can go by regular mail.

That should set the JDB on their heels. Please let us know how it goes.

[Floridagail]

I got a collection letter a year after my discharge from WF, I returned the letter with my case number and discharge date written on it. I also disputed it on my credit report online with my free annualcreditreport. It got removed and my score went back up.

You would think that a creditor would check the bankruptcy filings before starting a collection case.

[LadyInTheRed]

Did Verizon violate any laws selling the account to a collection agency when the case was open?

No.

Our credit score was near 700 last November. Since they are trying to collect the debt again it lowered it significantly!

If the collection efforts appear on your credit report, include in your cease and desist letter a demand that they remove all entries from your credit report.

[memuzz]

I wrote a letter demanding them to cease collection activity and also contacted all three credit bureaus. I checked my credit report right before purchasing our new car. I never connected the collection agency with Verizon. I knew Verizon was on my claims list. It is sad that a company who makes billions every year blatantly violate federal bankruptcy laws! I will never go with a major carrier ever after this situation. I have Virgin mobile with a 3G smartphone that has the same coverage for $45 a month. A friend of mine pays over $300 for 4 phones. What a waste of money! I also disputed the item with all 3 major credit bureaus. I checked to find out that they started contacting the credit bureau back in January about the debt. I was wondering why our credit score dropped 40 pts in just 3 months also.

Thanks for help. I was very proactive with my case keeping a close eye on it all those months and years. I guess I'll have to check my credit monthly just in case for instances like this one.

[LadyInTheRed]

It is sad that a company who makes billions every year blatantly violate federal bankruptcy laws!

If Verizon sold your debt during your BK as you say they did, then they haven't violated any bankruptcy laws. It is the company they sold it to who is breaking the law. They may have no idea that the debt was discharged. Unless they are among the worst of JDB, they will probably stop contacting you after receiving your letter.

[AngelinaCat]

If VIt is the company they sold it to who is breaking the law. They may have no idea that the debt was discharged. Unless they are among the worst of JDB, they will probably stop contacting you after receiving your letter.

This why I said to send two C&D letters; one to the original creditor, and the other to the JDB. That way you are covered all the way around.