Question about Debts sold AFTER filing Chapter 13

[mdl]

We are two thirds of the way thru our 13. Yesterday I looked at NDC and noticed that all my credit cards now list a zero balance. At the time we filed we listed all the credit card companies. Within the 90 day? Answer time only two of them changed over to a debt collector- ie Bass and Associates and Candida.... Now I have about 7 that show Portfolio Recovery...first, is this legal and second, do those idiots think they are going to be able to come after me once the 13 is over??? I already have one heck of a consumer rights attorney who took down a bill collector for my son, and I'll be glad to have him take these guys on.

[LadyInTheRed]

Nothing illegal is going on. It's all very normal. Your creditors sold the debts after they filed claims. The new owners of the debts filed proofs of claims so they can get paid in your Chap 13 instead of the original creditors who no longer own the debt. The trustee's office saw that the new claims replaced the claims of the original creditors and changed the records in NDC to show that no payments are due to the original creditors. In my case, when I click on a claim by a debt buyer, the "comment" field says, for example, "was Chase."

[FullBoost]

I agree that is quite normal and I saw it happen to me.

I would also check your credit report too. I had two items showing they were in collections on my credit report. I had no idea what they were so I called both of them. They had bought debt from one of the creditors I listed, but the original creditor failed to file a claim. As it turns out, both were unable to collect any money since they failed to file claims. They of course asked me if I would like to pay the balance, which I declined and told them to remove the collection from my credit report. They actually both did!

[Quicke23]

I agree that is quite normal and I saw it happen to me.

I would also check your credit report too. I had two items showing they were in collections on my credit report. I had no idea what they were so I called both of them. They had bought debt from one of the creditors I listed, but the original creditor failed to file a claim. As it turns out, both were unable to collect any money since they failed to file claims. They of course asked me if I would like to pay the balance, which I declined and told them to remove the collection from my credit report. They actually both did!

Good to hear this! I checked my credit report the other day and I saw one of the creditors on my report with a note saying "Chapter 13 payment plan". That creditor did not file a claim according to NDC and from what my Attorney can see.

[switch625]

In the meantime, it's such a nice feeling knowing that a chunk of your Ch 13 payment for the last third of your plan is going to people who you never borrowed money from and getting very very rich off your financial misfortune, isn't it?