Note buyers?

[Genenco]

Just wondering how many have had a "Charge-off" only to find someone bought the "Charge-off" and is trying to collect on it.

[Shaoline]

Yes, this started happening to me after my attorney filed the bk. They were selling off those loans as quick as they could. My attorney is doing an addendum. I have had to do 2 so far. The creditors are doing all they can to get around the Bk, so they can come after the person filing.

If the loan is sold and the buyer not listed in the bankruptcy they can come after for the amount owed. When it was happening to me I wondered how many other people this was happening to. I don't think even my attorney knew this would happen, he didn't mention anything about when he was going through my information with me. He didn't warn me about it. I had to find out when the request for payment started coming in from companies that I had never heard of.

[albacore44]

So lets say several CC companies charge off and sell your debt to Ca's prior to your hearing. Does this mean they are abandoning the debt, would not show up to your 341, or contest any charges etc. ??

[BigJohn]

Yes, this started happening to me after my attorney filed the bk. They were selling off those loans as quick as they could. My attorney is doing an addendum. I have had to do 2 so far. The creditors are doing all they can to get around the Bk, so they can come after the person filing.

If the loan is sold and the buyer not listed in the bankruptcy they can come after for the amount owed. When it was happening to me I wondered how many other people this was happening to. I don't think even my attorney knew this would happen, he didn't mention anything about when he was going through my information with me. He didn't warn me about it. I had to find out when the request for payment started coming in from companies that I had never heard of.

I got a gut feeling this activity of selling the loans to another party after you file bankruptcy is a new tactic. If people would pull their credit reports just before they file, immediately after they file and then a week or two after they file, this would give them some heads up if something is amiss and it would also provide legal defense that the stay might have been violated.

[BigJohn]

So lets say several CC companies charge off and sell your debt to Ca's prior to your hearing. Does this mean they are abandoning the debt, would not show up to your 341, or contest any charges etc. ??

If the original creditors have sold off the loan, they no longer have any interest in the loan. The one they sold it to now has legal interest.

[justbroke]

Ah, but something is said for the original debt, sold or not. A discharge and injunction order discharges you from that debt whether or not it was sold, given away, found years later, the companies merged, or aliens run the World Bank.

All you do is send the JDB or CA a copy of your Discharge Order and Notice of Bankruptcy and tell them to bug off. If they continue to collect after that... and I mean "collection"... then you can re-open and file Violation of Discharge Injunction and Sanctions motions.

The problem is that most people won't do that... and will put up with this pestering. They won't stop until they get sanctioned to death.

[albacore44]

If the original creditors have sold off the loan, they no longer have any interest in the loan. The one they sold it to now has legal interest.

So the action of selling of the loan soon after finding out the debtor filed, might be a last ditch effort by the OC to at least get something for the debt by not disclosing to the CA that the debtor has filed.

[StartingOver08]

Ah, but something is said for the original debt, sold or not. A discharge and injunction order discharges you from that debt whether or not it was sold, given away, found years later, the companies merged, or aliens run the World Bank.

All you do is send the JDB or CA a copy of your Discharge Order and Notice of Bankruptcy and tell them to bug off. If they continue to collect after that... and I mean "collection"... then you can re-open and file Violation of Discharge Injunction and Sanctions motions.

The problem is that most people won't do that... and will put up with this pestering. They won't stop until they get sanctioned to death.

That is exactly right. The JDB's are counting on us not taking the time or effort to kill this zombie debt. Justbroke and I should not be the only ones out there bringing sanctions, and penalties, to these JDB's...

Just think how ironic it would be to make several thousand dollars off of a debt that you discharged in bankruptcy because they continued to collect after the discharge. Your attorney would be happy and it would be the start of a nice nestegg.