Received a collection notice 7 months after discharge - - need some help

[midnight]

I received a collection notice for a debt that was including in our chap 7. I called the collection agency and when I said it had been discharged they got really rude and said it's not possible because they are municipal fines and if I don't pay they will report it on my credit. And they are NOT fines, they are permit fees for the county health dept. I spoke with my lawyer who said they ARE dischargeable and that I need to send them a letter stating that this was discharged and if they pursue it any further, we will pursue legal action.

However, before I do that, I decided to call the health dept and the woman was very nice. She said they just never received any notice of the bankruptcy (I think because the collection agency was listed first before the health dept and they received it instead....). So she said to just fax her a copy of the petition showing they were listed and a discharge notice.

Now, here is my question. The amount we had on the petition was $250, and she said she shows that we owed $400. She seems to think we owe the difference because we only put $250. Is she right? Do we owe the difference? Or does the bankruptcy absolve us of any balance that was owed by the time the petition was filed?? I am going to call my lawyer again, but wanted to also see what you guys said. I think he's getting a little cranky with me and all my calls.

[tcreegan]

Hi midnight,

You are absolved of any pre-petition debt. Send the county health lady and the collection agency the BK notice w/ case # and filing date; certified mail return recpt requested.

Enclose a letter gently reminding them that trying to collect on pre-petition debt is a violation of the BK court discharge injunction and they could be sued for damages + legal fees.

If they try to collect again, document everything. If they keep on doing it, show your lawyer and ask if you have enough to go back to the BK court and get some damages.

Usually the letter w/ the BK notice does the trick, hope it works well for you!

Tom in Colo

[DebtEnder]

So long as you did not acquire fees after your filing date the amount of the debt owed is irrelevant, for 99.999% of people. Debt, of this nature, incurred before filing is wiped out regardless of amount

[justbroke]

Now, here is my question. The amount we had on the petition was $250, and she said she shows that we owed $400. She seems to think we owe the difference because we only put $250. Is she right? Do we owe the difference? Or does the bankruptcy absolve us of any balance that was owed by the time the petition was filed?? I am going to call my lawyer again, but wanted to also see what you guys said. I think he's getting a little cranky with me and all my calls.

You would not owe any difference. A discharge in a Chapter 7 no asset case discharges all debt that occurred before the filing date. You don't need to be exact with the number. The debt is discharged (period). If the agency doesn't know what it is doing, you can advise them that they need to speak with their inside or outside counsel, since any further attempts to collect the debt will be met with a Motion to Show Cause and for Sanctions.