Can Old Dedt discharged be re-sold?

[NewStart11]

Hi All,
Can old dedt that has been discharged, be re-sold, this seems to happen with Chase, but when I dispute it, they keep on saying chase owns it, what should I do??
The dedt is discharged, and it states charge off, but says I owe $7990; I have disputed, and they say I need to contact chase, but they ARE CLUELESS!!!! No help at all. any ideas?
Thanks,
Russ

[justbroke]

Zombie debt! This is the debt that goes away, and then comes back!

This takes persistence! I'm having a similar issue but just getting it cleaned up now. I had to write a very demanding letter to the creditor themselves and copied the credit reporting agencies demanding the same. I am preparing to go back into the Bankruptcy Court as well. Only my problem is with one of my old -- discharged -- mortgages still reporting as 180+ days past due and owing $25,000 in back payments! This has all been discharged and the CRAs keep validating it as "verified accurate". LOL

I will let everyone know how my issue worked out when it does. It will be in my blog.

Until then, this is just zombie debt. It can technically be sold -- I don't know why someone would buy it -- but the purchaser has NO recourse to collect it! I also have one trade line that's reporting from HSBC that is inaccurate. Everytime I try to correct it -- through the CRAs -- HSBC writes me directly and says that it was sold.

You need to do as I do and actually tell them that if they fail to correct in 30 days, you will re-open your bankruptcy case and have the U.S. Bankruptcy court impose sanctions for violation of the permanent discharge injunction. I'll let you know how that works out in my case, if it goes that far.

[2manybills]

Zombie debt! This is the debt that goes away, and then comes back!

This takes persistence! I'm having a similar issue but just getting it cleaned up now. I had to write a very demanding letter to the creditor themselves and copied the credit reporting agencies demanding the same. I am preparing to go back into the Bankruptcy Court as well. Only my problem is with one of my old -- discharged -- mortgages still reporting as 180+ days past due and owing $25,000 in back payments! This has all been discharged and the CRAs keep validating it as "verified accurate". LOL

I will let everyone know how my issue worked out when it does. It will be in my blog.

Until then, this is just zombie debt. It can technically be sold -- I don't know why someone would buy it -- but the purchaser has NO recourse to collect it! I also have one trade line that's reporting from HSBC that is inaccurate. Everytime I try to correct it -- through the CRAs -- HSBC writes me directly and says that it was sold.

You need to do as I do and actually tell them that if they fail to correct in 30 days, you will re-open your bankruptcy case and have the U.S. Bankruptcy court impose sanctions for violation of the permanent discharge injunction. I'll let you know how that works out in my case, if it goes that far.

Also, I am hearing in CA, when an "Abstract of Judgment" has been recorded against property, even though the debt is discharged in BK, it is becoming more and more difficult to get that released by the creditor even though the debt has been discharged in bankruptcy.

[justbroke]

Also, I am hearing in CA, when an "Abstract of Judgment" has been recorded against property, even though the debt is discharged in BK, it is becoming more and more difficult to get that released by the creditor even though the debt has been discharged in bankruptcy.

Well, the real way to deal with judgments (recorded judgments and/or judgment liens) is to file a Motion to Avoid Lien during the pendency of the bankruptcy. This is why I always comment that recorded judgments are "special" and may require special handling. It is true that they may be void due to the bankruptcy, but getting them removed is procedural. The easiest way to deal with them, in my book, is to get them voided by order of the bankruptcy court, and then record the order of the bankruptcy court (or motion in the State court to vacate the judgment).

[2manybills]

Well, the real way to deal with judgments (recorded judgments and/or judgment liens) is to file a Motion to Avoid Lien during the pendency of the bankruptcy. This is why I always comment that recorded judgments are "special" and may require special handling. It is true that they may be void due to the bankruptcy, but getting them removed is procedural. The easiest way to deal with them, in my book, is to get them voided by order of the bankruptcy court, and then record the order of the bankruptcy court (or motion in the State court to vacate the judgment).

I am working on one right now for someone dealing with the firm of Hunt & Henriques. They are collection attorneys for the banks and resort to entering judgment without proper service, etc. They deal with all of the banks. It's a tough call to try to set aside a default or just race to the BK court before they actually record the Abstract. But your idea sounds good. I think if we can file the "Notice of Stay" in the State court before they issue the Abstract, that will be the end of it.

[nokia123]

Zombie debt! This is the debt that goes away, and then comes back!

This takes persistence! I'm having a similar issue but just getting it cleaned up now. I had to write a very demanding letter to the creditor themselves and copied the credit reporting agencies demanding the same. I am preparing to go back into the Bankruptcy Court as well. Only my problem is with one of my old -- discharged -- mortgages still reporting as 180+ days past due and owing $25,000 in back payments! This has all been discharged and the CRAs keep validating it as "verified accurate". LOL

I will let everyone know how my issue worked out when it does. It will be in my blog.

Until then, this is just zombie debt. It can technically be sold -- I don't know why someone would buy it -- but the purchaser has NO recourse to collect it! I also have one trade line that's reporting from HSBC that is inaccurate. Everytime I try to correct it -- through the CRAs -- HSBC writes me directly and says that it was sold.

You need to do as I do and actually tell them that if they fail to correct in 30 days, you will re-open your bankruptcy case and have the U.S. Bankruptcy court impose sanctions for violation of the permanent discharge injunction. I'll let you know how that works out in my case, if it goes that far.

I think I might be having the same problem, I am trying to fix it now.

[Flamingo]

Hi All,
Can old dedt that has been discharged, be re-sold, this seems to happen with Chase, but when I dispute it, they keep on saying chase owns it, what should I do??
The dedt is discharged, and it states charge off, but says I owe $7990; I have disputed, and they say I need to contact chase, but they ARE CLUELESS!!!! No help at all. any ideas?
Thanks,
Russ

When you are discharged, you should or will receive a letter usually from your attorney that if any creditor tries to collect on the debt that is discharged, to contact them. Discharged debt in BK is that - discharged debt which cannot be sold by the original creditor or collected upon by the original creditor. If the debt was sold prior to filing, there may be incorrect records/info listed somewhere that is creating your issue. What you need to do is contact the CRA with a detailed letter enclosing copies of your discharge papers and a creditor matrix showing the discharged creditor in question. Highlight it yellow and also copy the original creditor and send a copy to the place that purchased the debt - the address will be showing on your credit report for whatever company purchased the debt. Send certified mail, return receipt requested. Usually that will resolve the situation - it may not occur overnight but monitor over the course of a few months.