Deal with Original Creditor or Collections Person?

[bostonit]

I noticed on my credit report that a bank where I used to bank had a "charge off" on my report from 2009. Oddly enough it shows under a line of credit which they closed when I filed for my chapter 13. I guess after I closed out my checking account they paid an $18 auto debit and hit me with a $40 fee but I never received notice.

Fast forward 4 years, a collection agency has been calling and I finally got them to validate the debt but they then just sold it to a new company. The original debt shows as a charge off with the bank and as of right now there is no collection on my credit report. The new collection agency is offering to settle with me and I'm wondering if I should settle with them or go back to the original bank and see if I can get anywhere with them? I was thinking of sending the new agency a letter saying that I don't acknowledge the debt but would settle if they would agree not to file anything on my credit report.

Thoughts?

[LadyInTheRed]

I'm confused. Was this debt incurred before or after you filed BK? Was the creditor given notice of your BK? Are you sure this debt wasn't discharged? Did you receive a Chap 13 discharge?

Assuming the debt was not discharged: If the original bank sold the debt, there is no point in try to settle with them. Have the new collection agency validate the debt before you settle so that you are sure you settle with whoever actually owns the debt.

[justbroke]

If the original debt was included in the bankruptcy, and you received a discharge, then this debt is certainly discharged. Any collection is a violation. Just send a copy of your discharge order to the "collector" and demand that they stop attempting to collect a discharged debt.

As LITR writes, the status of your Chapter 13 (was it discharged or is in progress?) and whether this was related to a debt included in your bankruptcy is important to determine how you should respond.

[bcohen]

My thoughts are that you should send these people a letter informing them that you received a bankruptcy discharge on (date) and that any further contact shall be considered harassment in violation of the bankruptcy discharge.

[bostonit]

Sorry, I should have been more clear. Discharge is in 5 more months (fingers crossed). No, this was not a creditor that was listed. This was my overdraft line of credit which the bank closed once I declared under chapter 13 but it was not listed as a creditor since there was no balance and they closed it out. About 5 months later I closed the checking account and they decided to report it under the previous line of credit which they closed out.

[justbroke]

Sorry, I should have been more clear. Discharge is in 5 more months (fingers crossed). No, this was not a creditor that was listed. This was my overdraft line of credit which the bank closed once I declared under chapter 13 but it was not listed as a creditor since there was no balance and they closed it out. About 5 months later I closed the checking account and they decided to report it under the previous line of credit which they closed out.

I do knot understand why your bank would do such a thing, but that LOC would have been subject to discharge.

Very strange!

[LadyInTheRed]

I suggest you talk to your attorney about this.