he was able to get his credit back and was stable,was able to buy a house 10yrs later,why is it that he just got a letter from a creditor saying he owes money for a chase card that totals over $19,000? Is this legal??? It sounds illegal to me.
2007-12-20 08:58:50 · 5 answers · asked by Karen 2 in Business & Finance ➔ Credit
Bankruptcy does not wipe out a debt; it makes it illegal for anyone to take legal action to force payment of the debt. There is nothing to stop a collection agent from asking the debtor to pay, Many are dumb enough to pay something. There is a growing business in this kind of debt "collection." The simplest thing to do is to send a certified letter to the collection agent and demand damages for violation of the automatic stay from the bankruptcy court and because that is also a violation of your state unfair debt collection practices act (it probably is).
2007-12-20 09:20:39 · answer #1 · answered by thylawyer 7 · 1⤊ 0⤋
If this debt was discharged in the bankruptcy then yes it is illegal if they contacted him out of the blue. What this company is doing is violating the Bankruptcy Discharge Order. He needs to send them a certified letter stating that this debt was included in a bankruptcy. Include the Bankruptcy Case # and Discharge Date, as well as a copy of the discharge order. Also, state that they are to no longer attempt to collect this debt or report it to any agency. If they do this again after he sent this letter he can take them to court for this violation.
If it was not included in bankruptcy, it is beyond the Statute of Limitations in every state as well as the credit reporting period. So he can basically send them a Cease and Desist letter by certified mail stating this and that they are to no longer contact him again. If they do he can then again file a suit against them for violation of the Fair Debt Collection Practices Act.
The only case where this would not be illegal is if he went to Chase and requested a Chase card. In this case they would be allowed to request that he pay the past debt before they issued him a new card.
2007-12-20 09:12:41 · answer #2 · answered by OC1999 7 · 2⤊ 0⤋
If this credit card was included in your friends BK then what the collection company did is not legal.
It's is not legal to even try and collect debts that have been discharged by Federal bankruptcy.
Have him shoot a copy of his discharge paperwork that shows this debt being included and send it to the collection company certified mail return receipt requested and tell them that any additional action to collect this debt will result in legal action against them for violating Federal law.
2007-12-20 09:10:31 · answer #3 · answered by ? 7 · 3⤊ 0⤋
My wifes uncle and aunt filed bankruptcy 3xs on their home that they still live in...each time they need $$ they get a loan and pay till they dont want to pay and file again..
should be illegal,,but it seems the laws help the ones who refue to help themselves.
=[
2007-12-20 09:10:14 · answer #4 · answered by donttrustsnowmen 5 · 0⤊ 1⤋
yes this is legal and they very much can come back and bite you in the face with old finacial matters.
2007-12-20 09:06:42 · answer #5 · answered by aleatha r 1 · 1⤊ 2⤋