Nasty Creditor Trying to Collect After Discharge

[dumpinmydebt]

I was discharged last month, and about a week after that, I receive a letter from a collection agency. So, I send them a letter, along with the copy of the discharge. Here it is about 2 weeks later, and I get ANOTHER letter from them.

I call them. I turn on my recorder. Aren't they nice?

Dude has a serious attitude. Goes into this spiel about how they are collecting a debt and recording this call, and I tell him, "Well, I am recording as well and you are trying to collect on a debt that was discharged in a Chapter 7 Bankruptcy last month!"

He says,"Well it would've been nice if you would have let me finish what I was saying."

Whatever. Poor debt collector. Can't take the heat. Cry me a freakin river buddy.

Then he has the nerve to say,"Umm, we didn't call you. You called us."

I say," Yeah, because this is the 2nd collection letter I have received from you since my bankruptcy, and this debt, was discharged."

He says,"We always send letters."

I say,"You are not allowed to send me a collection letter on a debt that was discharged in a bankruptcy. If you continue to attempt to collect on this matter, I will take legal action against you."

He says," I will make a note of that" and hangs up on me.

So I'm going to send them one last letter today. But I need it to sound real good. Wanna give me some tips?

[justbroke]

I always caption said letters, in BOLD and larger font than the rest (and underlined).

NOTICE OF WILLFUL AND EGREGIOUS VIOLATION OF THE PERMANENT DISCHARGE INJUNCTION

I then start the letter with

As you are aware and have previously been noticed, Justbroke, filed for protection under the Bankruptcy Code (Tittle 11) on January 1, 2099. You were additionally noticed of the discharge entered in this case by the U.S. Bankruptcy Court, which occurred on April 3, 2099. A copy of that discharge was delivered by the Bankruptcy Noticing Center (BNC).

You are in violation of the permanent discharge injunction granted under 11 USC 524.

I usually end it similar to this

Please know and understand that I/we do not take this lightly. I am preparing to file a motion with the U.S. Bankruptcy Court in the District of Manitoba, for Entry of an Order to Show Cause as to why you should not be held in contempt for violating the permanent discharge injunction. Any further communication from you to collect this debt, whether by phone, fax, e-mail, letter, carrier pigeon, or any other form of communication, will result in the Motion being filed.

I trust that this ends this matter.

That's about it.

[dumpinmydebt]

That sounds very professional and was just was I was looking for! I can always count on you JB

Carrier pigeon ...... LMAO!

[NSH]

Ah, I have an idea for a letter:

Dear addleminded Collection Agent <Insert name here>
As you are no doubt aware, many of the people you are trying to collect money from are destitute, busted, broke and so poor they cannot pay attention. I am within this group and have recently been absolved of all my debts after filing a Chapter 7 Banruptcy. So I would just like to THANK YOU in advance. You see, your firm has sent me letters trying to collect a debt. When I called you to straighten this matter out, you intimated that it is your position that you believe it is your right to harrass me post-discharge before you hung up on me. I have to be honest that while I am telling you NEVER to contact me again, I am trying to pick up the pieces of my life, In short, I am broke, another word for bankrupt. So THANK YOU for continuing to pursue this matter, as I will gratefully use the money I win from suing your firm for harrassment to fund my future endeavors. With any luck, you will then be out of a job and will perhaps find yourself on the other side of your own threatening letters and phone calls, so you will know how we feel.

Again, thank you so much in advance for the opportunity to sue you for your repeated and unwelcome overtures after my Chapter 7.

[dumpinmydebt]

Ah, I have an idea for a letter:

Dear addleminded Collection Agent <Insert name here>
As you are no doubt aware, many of the people you are trying to collect money from are destitute, busted, broke and so poor they cannot pay attention. I am within this group and have recently been absolved of all my debts after filing a Chapter 7 Banruptcy. So I would just like to THANK YOU in advance. You see, your firm has sent me letters trying to collect a debt. When I called you to straighten this matter out, you intimated that it is your position that you believe it is your right to harrass me post-discharge before you hung up on me. I have to be honest that while I am telling you NEVER to contact me again, I am trying to pick up the pieces of my life, In short, I am broke, another word for bankrupt. So THANK YOU for continuing to pursue this matter, as I will gratefully use the money I win from suing your firm for harrassment to fund my future endeavors. With any luck, you will then be out of a job and will perhaps find yourself on the other side of your own threatening letters and phone calls, so you will know how we feel.

Again, thank you so much in advance for the opportunity to sue you for your repeated and unwelcome overtures after my Chapter 7.

That's funny.

[hopeforus]

Lol

[Kennesha1]

These letters are great and I may have to incorporate them into my next move....

I was just discharged on 1/28/2011, Chapter 7. I have two debts from a University that I included in the petition. Keep in mind that neither one of these debts are student loans. One was a housing debt, and the other was an emergency campus I used for books (no government involvement whatsoever).

My questions are these:

1) for the housing department: now that I have been discharged, they have removed the hold on my records and registration but told me that they will automatically deny me housing in the future because of their previous unsuccessful collection attempts. Isn't that illegal? especially if I meet the criteria of approval? that's kind of like "paying me back" for discharging the debt. The housing would be perfect for my children and I as I continue my efforts to get my college degree after 17 years. the hold was back from 1993.


2) the loan services department: the guy admininistering my loan removed the records hold immediately when I filed and faxed him the notice of filing. He put a hold BACK on my records on 2/7/2011, and told me...."oh, this debt isn't dischargeable because it is an education-related expense." I said, but it's not a federal or state student loan, so it would be dischargeable just like any other campus debt. (all the rest of the holds have been removed). Says I have to pay the $1100. That was also from 1993.


I just want to move on with my life and want the clean start that filing Bankruptcy affords me. Can these two departments do this and how should I handle my responses?


P.S. Can I say that I truly am so very thankful for this forum! I couldn't afford and attorney and filed my own petition. This whole process has inspired me to change my major from pre-med to pre-law and I couldn't have done it without this forum! THANK YOU, THANK YOU, THANK YOU!!!!!!

[justbroke]

1) for the housing department: now that I have been discharged, they have removed the hold on my records and registration but told me that they will automatically deny me housing in the future because of their previous unsuccessful collection attempts. Isn't that illegal? especially if I meet the criteria of approval? that's kind of like "paying me back" for discharging the debt. The housing would be perfect for my children and I as I continue my efforts to get my college degree after 17 years. the hold was back from 1993.

No, some people get blacklisted from creditors all the time. A perfect example is American Express. I have not read any cases where not "extending" credit to you based on a previous relationship of non-payment, is illegal. Is there alternate housing available?

2) the loan services department: the guy admininistering my loan removed the records hold immediately when I filed and faxed him the notice of filing. He put a hold BACK on my records on 2/7/2011, and told me...."oh, this debt isn't dischargeable because it is an education-related expense." I said, but it's not a federal or state student loan, so it would be dischargeable just like any other campus debt. (all the rest of the holds have been removed). Says I have to pay the $1100. That was also from 1993.

Then you have to litigate it with the Court. Personally, it's questionable as to whether it is "education-related" or not. You would need a declatory ruling from the Bankruptcy Court. I would do this as a Complaint to Determine Dischargeability and for Willful Violation of the Permanent Discharge Injunction. Filing a complaint is an adversary proceeding and is a complex area that is tough, at best, for pro se filers. Depending on your District, you may be able to just re-open your case and file a Motion related to the Violation, and get an Order based on that.

I just want to move on with my life and want the clean start that filing Bankruptcy affords me. Can these two departments do this and how should I handle my responses?

Probably. There is a genuine question of whether the money loaned in the second part is actually a student loan (education loan) for purposes of the Bankruptcy code. For the housing issue, I don't see an issue.

justbroke says: Please remember that a Bankruptcy does not remove the actual debt! It only removes the ability of the creditor to employ process to collect the debt!

justbroke adds that also be aware that letters don't solve all problems. Even the very stern letter I outlined above may actually be challenged or ignored by a creditor. You must be not on willing to take the next step, but capable of re-opening your case, filing a motion, or filing a complaint. The latter being a significant effort.