Legal Question in Bankruptcy in California
Can a credior collect a debt with interest after it was filed a part of Ch 7 abo
I received a letter from a creditor demanding payment on a debt that was covered in bankruptcy court about 12 years ago. They are requesting payment plus interest. Can they do that? Do I need to pay this astronomical amount of money? It was an unsecured credit card debt. Thank you.
2 Answers from Attorneys
Re: Can a credior collect a debt with interest after it was filed a part of Ch 7
Thanks for your posting. If your debt was listed in your original bankruptcy, and was discharged, then they cannot collect on it. You should send them a letter with a copy of the discharge order in your case.
There are a few other possibilities here also: (1), this may have gone to a collections agency. It is common for the collections agency not to know what the original creditor knows.
(2) you may be subject to a judgment. In California, a judgment may be renewed every 10 years, even if it was originally discharged via bankruptcy.
Thanks, and if you need any further assistance or have questions, please feel free to call me at 1-877-568-2977 or email me.
Re: Can a credior collect a debt with interest after it was filed a part of Ch 7
If the debt was discharged in your bankruptcy case, then obviously what they are doing is improper. It sounds to me like there is an issue with respect to whether or not the debt was actually discharged. Without knowing more facts about the debt and the bankruptcy proceedings, I cannot give you more guidance. If you would like a consultation, feel free to give me a call and I will be happy to go over your situation with you.
Related Questions & Answers
-
Co-signed loans My mom cosigned my car but I'm the one who's paying for the car... Asked 11/16/01, 1:41 am in United States California Bankruptcy Law
-
Refiling Chapter 7 My Chapter 7 filing was dismissed due to non-payment of filing... Asked 11/13/01, 10:53 am in United States California Bankruptcy Law
-
Freezing bank accounts Can our bank put a freeze on our account? Asked 10/25/01, 3:22 pm in United States California Bankruptcy Law