Pay Day Loan collections after bankruptcy

[moneytrouble]

I did a search, but did not find the answer to what I thought would be a common issue. A couple of weeks ago I was threatened by a collection agency stating they have or will file a civil claim against me for NSF on a pay day loan. They stated I could not include this pay day loan in bankruptcy, as I checked a box stating I was not filing bankruptcy. Obviously I know this is not true. Since I have already been discharged, what should I do at this point? Just ignore them or send them a letter with my discharge notice? I would rather not send them anything, as I don't want to ruffle their feathers. I am afraid if I send them something, they may see I am serious and actually file the civil claim. I don't have another $1500 for a lawyer. Bankruptcy is not a fresh start, as this is the second threat I received since my discharge and both of these companies were listed in my bankruptcy. I guess they can legally still harass me, if my account was sold to a collection agency, as the original creditor does not have control over the company they hired.

[AshShep01]

I did a search, but did not find the answer to what I thought would be a common issue. A couple of weeks ago I was threatened by a collection agency stating they have or will file a civil claim against me for NSF on a pay day loan. They stated I could not include this pay day loan in bankruptcy, as I checked a box stating I was not filing bankruptcy. Obviously I know this is not true. Since I have already been discharged, what should I do at this point? Just ignore them or send them a letter with my discharge notice? I would rather not send them anything, as I don't want to ruffle their feathers. I am afraid if I send them something, they may see I am serious and actually file the civil claim. I don't have another $1500 for a lawyer. Bankruptcy is not a fresh start, as this is the second threat I received since my discharge and both of these companies were listed in my bankruptcy. I guess they can legally still harass me, if my account was sold to a collection agency, as the original creditor does not have control over the company they hired.

I am going through the samething. What state are you in? It all depends on what state you are in... if they can take you to court or not.

[lafrteacher]

From what I understand, discharged is discharged. If you listed them as a debt, then they are in violation by contacting you, and in violation of the Fair Debt Collections Act by threatening you. Document everything they do, and remind them of the law when they try to harass you. Send them a "cease and desist" letter and a copy of the discharge from the court.

I had a payday loan collection company call me today. I reminded them that they were violating the stay by contacting me and leaving voice mail messages (not discharged yet), and they hung up. Many states will not allow payday loans to be prosecuted like NSF's. Do a search for your state's laws.

Please note, I am NOT a lawyer and cannot give legal advice. If you used a lawyer when you filed, I would call them to see what they say.

[StartingOver08]

moneytrouble, you are in much better shape than you think you are. Not only is the payday loan company violating the FDCPA, they are violating the discharge injunction which is a violation of the bankruptcy code.

Good for you. You can take this to your attorney and both of the violating creditors would owe you money for sanctions. We are not talking about $1000 here - you could collect big money for these violations. Document all of the contacts from the creditors.
Look at this link: http://www.************************/...reen-part-iii/

Look at this case against Capital One from a Trustee for violations of the discharge order: http://www.usdoj.gov/ust/eo/public_a..._complaint.pdf

Hey, use these funds to get a true fresh start! NONE of these creditors will back off unless you force their hand. They push us around, we need to push back.

[moneytrouble]

I live in MI. The lawyer stated as long as it is listed on my bankruptcy I still owe them nothing. Although, there is nothing from stopping them actually filing a civil claim and forcing me to go to court. It is their legal right. Let's hope no more companies go after me. This is utterly depressing continuing to be harassed after discharge. I was hoping not to have my name in the public court system ever again after bankruptcy, but if these companies all file civil claims, I guess it will be. Chapter 7 is not the fresh start lawyers advertise. I have a whole other post about being denied credit as another downfall after bankruptcy discharge. I know people will argue that it is, but I am just providing my experiences for someone who may have the same issues.

[lafrteacher]

I live in MI. The lawyer stated as long as it is listed on my bankruptcy I still owe them nothing. Although, there is nothing from stopping them actually filing a civil claim and forcing me to go to court. It is their legal right. Let's hope no more companies go after me. This is utterly depressing continuing to be harassed after discharge. I was hoping not to have my name in the public court system ever again after bankruptcy, but if these companies all file civil claims, I guess it will be. Chapter 7 is not the fresh start lawyers advertise. I have a whole other post about being denied credit as another downfall after bankruptcy discharge.

I doubt they would spend that much money to try to recover a small loan. Secondly, all you would have to do is bring the documents to the judge proving it was discharged, if it ever even made it that far. Thirdly, you can counter-sue for the violations mentioned above. It's called Bankruptcy Protection for a reason.

Don't let them intimidate you! Know your rights, and let them know you won't be bullied! Also, tell them you're recording their calls. That usually works. You don't even have to talk to them, you know. And, if they actually send you something in writing, you've got the proof you need to go after THEM.

I used to worry myself to death about collectors, but I found out my rights and exercised them.

[moneytrouble]

I doubt they would spend that much money to try to recover a small loan.
I used to worry myself to death about collectors, but I found out my rights and exercised them.

I know I am being dramatic and worrying too much about all of these post-discharge collections, but still, it's frustrating. Especially when they have already called family members and my work previously. I read on one of those whatsthisnumber.com sites, that some of these collection agencies contact people 3.5 years later. I sure hope they are not contacting family members 3 years after getting my finances straight making it look like I am still in financial distress.
Thanks for info everyone!!!

[music12]

moneytrouble, it is NOT their legal right to file a claim and take you to court. it is utterly illegal of them to do so. if telling them to stop does not work, document everything. tell them if they don't stop you will file a motion in bk court to get sanctions and attorney's fees against them.

talk to the lawyer who did the bk for you. they may take them to court without your paying them because the bk code allows them to get their fees from the violating creditor. at least it's worth a phone call to the lawyer to find out.

if you really think they will file a claim against you, it may be best not to wait until they do that but to get the bk court to protect you before they do that.

[moneytrouble]

I really don't want to spend any more money with this bankruptcy. Does it cost anything to get the bankruptcy court involved? Unless I have to, I don't want to go to court against these 2 companies, or whoever else may come along and start threatening me with court action. I certainly don't want to spend $500 an hour on a lawyer or more. I am already having a hard time getting the mortgage company to foreclose on my home that lost 40% of its value. Condo dues possibly can continue to mount against me after the discharge, even though I am not living there. Bankruptcy discharge to me is not a fresh start. It may be a relief of some debts, but you can still be left with large debt like condo dues(post discharge) and school loans, harassment from creditors, and unable to get credit(in my case).

[music12]

it's worth a phone call to your lawyer to find out the details. it could be that your lawyer would just call them and it would stop. nothing to lose by asking.

[Bell30656]

Another angle that isn't being mentioned... In some states an NSF check can cause you to be arrested!!! Check with your attorney. Just going with the Devil's Advocate, what if the collection agency isn't trying to collect the check but rather is trying to collect on the NSF check which may or may not have been discharged in the CH7.

Bad check laws vary from state to state. Check you state! Bankruptcy will not protect you from criminal prosecution, nor will it discharge criminal liability for restitution if ordered by the court, plus costs, fines, etc. Don't forget the cost of a bondsman, the embarrassment of arrest, etc.

This is something that you really need to ask your attorney. In my state, Georgia anyone that accepts a check knowing that funds are not available at the time it is written can not prosecute it as a bad check. Georgia also doesn't allow payday loans.

Did I mention: ASK YOUR ATTORNEY!

http://www.michigancollectionlawblog...aw_collec.html

[music12]

Bell, please don't add unnecessary stress here. for the OP to be prosecuted for a bad check, someone would have to go to the police and report it, AND the police would have to think it's worth wasting time on it instead of finding real criminals - murderers, rapistst, etc. . come on! this angle isn't being mentioned here because it just isn't going to happen.

[frogger]

Bell, please don't add unnecessary stress here. for the OP to be prosecuted for a bad check, someone would have to go to the police and report it, AND the police would have to think it's worth wasting time on it instead of finding real criminals - murderers, rapistst, etc. . come on! this angle isn't being mentioned here because it just isn't going to happen.

It's easy to prosecute someone for a bad check in GA and the police have nothing to do with it. Send them a certified letter, and 10 days later go to the magistrate office and fill out the paperwork. In GA, they WILL arrest you for bad checks if you do not make them good or miss your court date!

[Bandit]

It could just be that the right people from payday did not get the notice of BK or the discharge. It is possible the wrong address was applied or they never got the letter.

Did you ask them?

I must have missed the bad check part somewhere, what does that have to do with this.

Chapter 7 is not the fresh start lawyers advertise. I have a whole other post about being denied credit as another downfall after bankruptcy discharge.

I must agree. It is not the fresh start people brag about. That is just a term that people use to feel good about it and generate business, not a bad term, but not an accurate term. BK is a second chance to rebuild and try to do things better, but it is far from what I call a fresh start or anything fresh.

[music12]

It's easy to prosecute someone for a bad check in GA and the police have nothing to do with it. Send them a certified letter, and 10 days later go to the magistrate office and fill out the paperwork. In GA, they WILL arrest you for bad checks if you do not make them good or miss your court date!

that's scary. glad i never wrote a bad check in my life...