Will my debt be discharged in bankruptcy if it's been turned over to a collection agency?
I am working on paperwork to filing bankruptcy. My attorney wants me to list all my creditors. Thing is, most of them were charged off three years ago and now belong to collection agencies. If I list my original creditors in the bankruptcy, will the collection agencies still have the debt, and will they be able to harass me? That is to say, will the debt really be gone?
Posted July 2nd, 2010 in Bankruptcy Q and A. Tagged: collection agencies, creditors, filing bankruptcy, paperwork.
You must list the collection agencies, they own the debt now, and if they are not notified on the bankruptcy filing, they can continue to try to collect the debt as they will not be included in the automatic stay. Order your credit report, answer the phone anytime a collector calls and get their information, address, the account they are collecting, account numbers, amount of debt, etc. Do everything you can to list every debt you have.
July 2nd, 2010 at 2:14 pmYou need to list everyone. List the original creditors AND the collection agency. Your attorney should have told you to get copies of your credit reports from the three reporting companies. If he didn’t tell you to do that, or if you didn’t pay him to do it, then you need to get a new attorney. That’s the FIRST thing a bankruptcy attorney has you to do.
You then list every one on your credit report who says you owe them money. Plus you list any you know about that are not on your credit report. The attorney sends letters of intent to file bankruptcy to everyone you list.
July 2nd, 2010 at 2:14 pmBankruptcy is a legally declared inability or impairment of ability of an individual to pay its creditors. Creditors may file a bankruptcy petition against you ("involuntary bankruptcy") in an effort to recoup a portion of what they are owed or initiate a restructuring. In the majority of cases, however, bankruptcy is initiated by you (a "voluntary bankruptcy" that is filed by the insolvent individual or organization).
July 2nd, 2010 at 2:14 pm