Legal Question in Credit and Debt Law in Louisiana

Can Collection Agencies file suit?

A local hospital has turned over my account to a collection agency. The amount due is $600. The debt is almost 2 yrs old. Due to that I am currently in a Ch.13 Bankrupty and the Trustee takes most of my check, I have not been able to pay this debt. I do plan to start sending small amounts per month. Is a collection agency legally able to file suit against me?


Asked on 12/30/04, 10:25 am

1 Answer from Attorneys
J. David Andress Grand Law Firm

Re: Can Collection Agencies file suit?

First, if you are currently in an active Chapter 13 case, the automatic stay (see 11 U.S.C. 362) is in effect, unless it has been lifted as to that particular debt. The collection agency is prevented by the stay from pursuing you for the debt. If the bill was incurred prior to your bankruptcy filing then you should have included it in your bankruptcy. If it is a pre-petition debt that was not included then you need to notify the collection agency that you are currently in Chapter 13, because they may not be aware of that fact. Otherwise, if it is a post-petition debt (meaning it was incurred after your bankruptcy was filed) then you will still be liable for the debt, even though they can't pursue collection because of the automatic stay.

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Answered on 1/05/05, 10:01 pm


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