Legal Question in Bankruptcy in California
I live in CA and I have a collector calling me after my Chapter 7 discharge which was granted 6 months ago. They said I owe them over $3000.
One of the issues I had with this particular account is that it was sold to many 3rd party collection companies so it was difficult to track.
I did include the main first party creditor in my Chapter 7 bankruptcy but I'm unsure if I included all of the other 3rd party collection companies.
Long story short, before my discharge was granted 6 months ago, I got a call from one of the collectors (who I believe is calling me now 6 months later) and I immediately filed an amendment and paid the $26 amendment fee. The amendment was filed before the discharge.
My questions:
1) What should I do about this collector who is calling me now?
2) How do I find out whether my amendment was successfully processed to include this collector or not?
3) If my amendment was not successfully processed, what are the correct steps to file the amendment to include this collector?
4) Is there any deadline to file an amendment after the discharge?
Thanks for your help!
3 Answers from Attorneys
You don't need to amend. Get his address, and send him a copy of your bankruptcy discharge and a letter to CEASE AND DESIST. Keep a copy. The discharge covers collection of all unsecured debt. If he persists, speak with an attorney about filing an action in bankruptcy court for violation of the bankruptcy permanent injunction. You might even be able to collect damages and attorney's fees.
I just want to add to Mr. Cohen's great response that I would send the letter certified with return receipt requested so you can have a better case to get compensation for violation of the discharge and consumer protection laws if the collection agency continues to contact you. The debt was discharged whether or not they got notice of the discharge unless the trustee in your case took property from you to distribute to your creditors. Almost all Chapter 7 cases are no asset cases which means that there is nothing the trustee can take and the creditors get nothing. Therefore, whether or not a creditor receives notice of the bankruptcy in a no asset case makes no difference. This is the rule applicable to California and other western states in the U.S. 9th Circuit Court of Appeals region.
It sounds like quite a frustrating situation: you filed your bankruptcy case, got your discharge and you still have to deal with this.
The collector's efforts violate the Bankruptcy Code's permanent injunction against such activity. I agree that you need to send a "cease and desist" letter with a copy of the discharge notice. If the collector contacts you again after that, you can sue them for contempt in the bankruptcy court--even if your case has been closed already.
In addition, you will want to make sure the collector and/or creditor is not continuing to report this on your credit report. If so, they are subject to additional fines.
I hope that helps.
Best wishes,
Elaine Cerveno
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
