Payday Loans 6 months or less before filing

[ccsjoe]

Hi all, Hi cssjoe,

Lender hears of BK and quickly sells off as many of the debtors debts as they can. Debt gets bought by Collection Company #1 Collection company #1 has never received the original BK notice mailing. They begin to use the usual collection methods; saturate the phone with calls, daily letters, move up to threatening letters and threatening phone calls.

Send you mail BK notice by mail return receipt requested to the main corporate office. Ideally, all calls, letters, etc will cease. For each attempt to collect for this debt, write out the details, time and date. If you build up a number of these you go after them for violating the automatic stay. Get your lawyer involved but it is probably easy enough to do pro se. You can get some serious cash out of this....think hundreds per # of cases you have.

sorry for the rambling.....

If you miss a simple unsecured creditor on your matrix they will not get the BK notice sent out by the court. Not knowing there was a BK, they continue to collect the debt (calls, letters, veiled threats, etc) You send them a copy of the BK notice with the case # and date filed highlighted. If you get anything that looks like a collection attempt, docuement il and if you have enough, go to court.

When they try to tell you that debt is still valid b/c they weren't notified, tell them to pound sand....and contact the BK court judge

its been a rough week, I hope the garrulous rambling I left here make some sort of sense to some one.....

Thanks Tom. So it's not somthing explicitly written in law but rather interpreted and upheld by court decisions? Or is it simply making it too darn cumbersome and expensive for CA to pursue?

[free2breathe]

Ok, in a panic here. We had taken out some pay-day loans to get to the end of the week in the last couple months. We paid each of them back in full on their due dates. So, we are not claiming any of them in the bankruptcy, but I also didn't think about stating them on my Statement of Financial Affairs as payments made. Should I amend it to include the loans? I thought we only had two totaling less than $600, so didn't think I needed to refer to them. I have just found a third that was done within the 90 days before filing.

[free2breathe]

"a. Individual or joint debtors with primarily consumer debts are required to
complete item 3(a). List all payments of $600 or more on loans, installment purchases of goods
or services, and other debts paid to any creditor on or within 90 days before the commencement
of the bankruptcy case. Indicate with an asterisk (*) any payments that were made to a creditor
on account of a domestic support obligation or as part of an alternative repayment schedule
under a plan by an approved nonprofit budgeting and counseling agency."

This is straight from the instruction page for Form 7, Statement of Financial Affairs. Am I reading it correctly? If we took out the loan and paid it back before filing, and it's under $600 payment....we shouldn't actually get in trouble for not listing it, right?