Garnishment after discharge

[Wolfpac]

My chapter 7 no asset banktruptcy was discharged on 2/4/2011. I noticed on my paystub about sheriff garnishment. It seems I omitted a debt that was sold to a collection agency. The original debtor was listed on the chapter 7 filing but the collection agency that bought the debt was not listed. I am thinking of filing an amendment to include the collection agency. I heard that it is not neccessary to file an amendement. All I have to do is to show the discharge letter to the Sheriff Department. Please advise.

[free2breathe]

Provide a copy of your discharge paperwork to the Sheriff's Dept, also send a copy, return receipt requested, to the attorney of record for the collection agency (and the agency itself if you wish). I would also send a copy of the paperwork showing that the original debt was included in the petition. You should be fine.

[IamOld]

free2breathe is right! And, if you can get an atty that handles debt collection cases, may be a violation of the discharge (original creditor should not have sold debt etc etc) and you may just make a few bucks!!!

[keepmine]

free2breathe is right! And, if you can get an atty that handles debt collection cases, may be a violation of the discharge (original creditor should not have sold debt etc etc) and you may just make a few bucks!!!

Nothing illegal in selling a debt that's IIB. In fact, there are a few collection agencies that specialize in this pratice.

http://www.businessweek.com/magazine/content/07_46/b4058001.htm

`HAPPENS ALL THE TIME, YOUR HONOR'
Because of episodes like this, discharged debts have attracted the attention of little-known firms expert at buying and selling a range of delinquent consumer obligations. Back-due bills with a face value of billions of dollars change hands at a steep discount every year. Five of the companies in this business are publicly traded on Nasdaq. Others have large private-money backers. B-Line, in Seattle, was acquired last year by the Dallas-based hedge fund firm Lone Star Funds. The investment bank Bear Stearns (BSC ) owns two bankruptcy-debt buyers: Max Recovery and eCast Settlement.

The very existence of this marketplace confounds even some veterans in the bankruptcy field. During a preliminary hearing in New York in March, U.S. Bankruptcy Judge Robert Drain asked a lawyer for JPMorgan Chase (JPM ) how the bank had managed to sell consumer credit-card debts that had been discharged. "I don't know who would buy a discharged account," the perplexed judge said.

"Happens all the time, your honor," the Chase lawyer, Thomas E. Stagg, responded.

[AngelinaCatHub]

Nothing illegal in selling a debt that's IIB. In fact, there are a few collection agencies that specialize in this pratice.

http://www.businessweek.com/magazine/content/07_46/b4058001.htm

`HAPPENS ALL THE TIME, YOUR HONOR'
Because of episodes like this, discharged debts have attracted the attention of little-known firms expert at buying and selling a range of delinquent consumer obligations. Back-due bills with a face value of billions of dollars change hands at a steep discount every year. Five of the companies in this business are publicly traded on Nasdaq. Others have large private-money backers. B-Line, in Seattle, was acquired last year by the Dallas-based hedge fund firm Lone Star Funds. The investment bank Bear Stearns (BSC ) owns two bankruptcy-debt buyers: Max Recovery and eCast Settlement.

The very existence of this marketplace confounds even some veterans in the bankruptcy field. During a preliminary hearing in New York in March, U.S. Bankruptcy Judge Robert Drain asked a lawyer for JPMorgan Chase (JPM ) how the bank had managed to sell consumer credit-card debts that had been discharged. "I don't know who would buy a discharged account," the perplexed judge said.

"Happens all the time, your honor," the Chase lawyer, Thomas E. Stagg, responded.

Then there is nothing new under the sun. The banks are just screwing a different source of money. Selling junk debt that is not legal to collect under the implied injunction. Aren't banks soooo friendly? Some will even call you by your name. Fool.

Remember the Savings and Loan debacle some years ago? There are no saving and loans anymore. I see soon the banks will become part of the "Brave New World" of Obamma. 'Hub

[nokia123]

Nothing illegal in selling a debt that's IIB. In fact, there are a few collection agencies that specialize in this pratice.

http://www.businessweek.com/magazine/content/07_46/b4058001.htm

`HAPPENS ALL THE TIME, YOUR HONOR'
Because of episodes like this, discharged debts have attracted the attention of little-known firms expert at buying and selling a range of delinquent consumer obligations. Back-due bills with a face value of billions of dollars change hands at a steep discount every year. Five of the companies in this business are publicly traded on Nasdaq. Others have large private-money backers. B-Line, in Seattle, was acquired last year by the Dallas-based hedge fund firm Lone Star Funds. The investment bank Bear Stearns (BSC ) owns two bankruptcy-debt buyers: Max Recovery and eCast Settlement.

The very existence of this marketplace confounds even some veterans in the bankruptcy field. During a preliminary hearing in New York in March, U.S. Bankruptcy Judge Robert Drain asked a lawyer for JPMorgan Chase (JPM ) how the bank had managed to sell consumer credit-card debts that had been discharged. "I don't know who would buy a discharged account," the perplexed judge said.

"Happens all the time, your honor," the Chase lawyer, Thomas E. Stagg, responded.

I found this to be very interesting, what's next?

[Chowder]

Nothing illegal in selling a debt that's IIB.

Of course not. I can legally sell you any worthless item or idea you are stupid enough to buy. It's the misrepresentation of such that would be a fraud, e.g. claiming a debt is collectable which has been discharged IIB.

[Chowder]

Remember the Savings and Loan debacle some years ago? There are no saving and loans anymore. I see soon the banks will become part of the "Brave New World" of Obamma. 'Hub

Yeah. Ya gotta wonder if the TBTF banks outed their SnL competition. Hell, now they are literally not only eating each other, but eating their own.
Matt Taibbi from that lefty rag Rolling Stone has written many great, easy to follow, articles on this whole debacle. The Big Short is another disturbingly informative read.

As big a PITA as CUs are, they are the way out of this mess.

[Wolfpac]

I found out that in the state of California, as long as the discharge is Chapter 7 banktruptcy no asset discharge, all debts are discharged. It doesn't matter if you listed the debts or not. Please confirm.

[free2breathe]

From what I've read when looking into this, most bankruptcy courts are going to consider any pre-petition debt discharged in a no-asset case. The reasoning is that even if this creditor was notified, they stood nothing to gain....no assets, no distributions. It's a waste of the court's time to reopen cases to include creditors who have absolutely nothing to gain by doing so.

You can find the same information by googling "creditors left off petition in no-asset chapter 7" or a similar search term to find page after page.