Is this a scare tactic?

[editordwc]

Quick question: I have friend who is preparing to sign ch7 bk papers next week. Today she recd a call from a collection agency who told her since the debt she owed was less than $500 (it's an unsecured $160 loan to a cash advance company B&L Marketing) that that debt couldnt be discharged under Nebraska BK law. Any illumination from you fine folks.??...I say they are full of it and this a scare tactic....

thanks as always....

dwc

[ready2puke]

Liar liar pants on fire!!!

[Flamingo]

Anyone working at a collection agency and making collection phone calls is working for commission - they will tell you anything hoping to get you to pay so they can make some money themselves.

[justbroke]

That is absolutely false. There's nothing in the BK code which states that, and it is U.S. Bankruptcy Code which determines dischargeability... not underlying non-bankruptcy State law.

Strange people. Anyhow, B&L is just lying to her. I'd probably threaten B&L, the next time, with a TILA violation and/or actually file one. These scare tactics are illegal.

The only way it could be non-dischargeable, is if it was a criminal penalty or fine, under State law.

At least, that's my read.

[BnkrptcyLwyr]

Utterly false ... and despicable.

[JRScott]

It's a scare tactic, list them and they will go away

[editordwc]

My friend went to her bk7 signing this afternoon and she asked her atty about this scare tactic...and the atty rolled her eyes and said this is what we call a "CBS" situation....and my friend said, is that bad? "No, we call it Creditor Bull Shit"....at any rate, my friend is signed and the filing takes place tommorow....Im excited for her, just to see that this is going to give her a whole new outlook on life ! thanks all....will update after the 341...

dwc