Junk debt buyer is still trying to collect on 5 year old debt

[lillymarlene]

I thought these phone calls were over with, but I guess not. I just received a call today from a collection agency for a bank, where my father had a credit line secured against his business. He has been deceased now for over 5 years, and died with a negative net worth.

The collector tried to claim that I am responsible for this debt since I was listed as a co-owner of this business. I said that my father had left no estate, and died penniless. I too, said that the debt was against my father's business, which has been closed. I also mentioned that this one is my firm, with a separate tax ID, since I had answered the phone, "Anyone Company." And no I hadn't retained anything out of the old business, because there was nothing left. Then I hung up the phone. (I'm always afraid I'll say too much.)

What should I do if this person calls again? I filed chapter 13 October 2010, was confirmed May 2011 and the debt was listed as a secured creditor that I had cosigned on with my father. (Even though I may not have officially at least, co-signed for this particular loan.) Should I just mention I'm in bankruptcy and give my case number? The original creditor bank, never bothered to put in a claim against my chapter 13. Aren't these people in some sort of violation of my "automatic stay?"

[JackBondLove]

If you signed a personal guarantee on the loan, it would be the same as if it were a regular unsecured CC or other personal loan. In that case, it would make no difference that your father died insolvent.

You listed the debt on your Chapter 13 filing, so all you have to do is to mention that you have filed for BK, and give the JDB the phone number of your attorney, and the filing #. You can also tell them that if there were to be any further calls, you will not hesitate to sue for damages for violating BK law.

[lillymarlene]

Thanks Jack. I suppose that is the best idea, since I had listed the debt "just in case" even though I wasn't sure I was responsible for it. The thing now is that this JDB as far as I know only has my business phone number, and no other information whatsover about me. I hate to think that by looking up the public bankruptcy record he'd be able to find my home address and personal phone numbers. Or is that not possible?

[AngelinaCatHub]

Your Statute of Limitations is six years in your state. Since you listed it, as Jack stated, it will be your debt. Like a fool, I once co-signed for a so called friend for a car. He stopped paying and I had to list his debt too. He got sued but they won't get anything from him. I knew better. One of my life's many mistakes. 'Hub

[lillymarlene]

O.K. if he calls again, I'll just give out my case number and attorney phone number. I'll check the number of the loan against my matrix though, my father unfortunately had out so many loans, it's hard to keep track. My father may also have just written my signature...he was just so desperate to save his business before he passed away, he even took out several credit cards in my brother's name. My brother didn't find out until recently.

[GoingDown]

Then I hung up the phone. (I'm always afraid I'll say too much.)

I agree.

They aren't your friends.

They aren't trying to help you.

They aren't going to be reasonable about this.

They are going to do everything they can to bully you into paying them.

I would send them a cease and desist communications letter and include only the information that you have already filed bankruptcy, give the case number, and tell them that they are violating the automatic stay by contacting you.

In this particular case, you may want to send it by certified mail so you can show the bankruptcy court that you made an effort to notify them that they are violating the automatic stay, and if they continue to violate it, it will be seen as willful violation by the court.

And then start recording any telephone calls from them. Only stay on the phone long enough to say the date and time of the call and to get them to identify themselves, and then notify them they are violating the automatic stay and then hang up on them. Be polite, since you may want to play these recordings to the judge.

[lillymarlene]

GoingDown, thanks. That looks like the best idea yet. If they call again, that's what I'll do. I think some of these things, from my father's old debts are about to expire with my state's SOL. It's probably why some of these ca's are trying a last minute effort.