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Debt Collector Attempting to Collect After 3 Years

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#1 nythng4mygrl


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Posted 11 February 2013 - 08:43 AM

My Chapter 13 was dismissed in July 2010. In looking over my credit report, they reported the wrong amounts, so I disputed the amount due. THey had me borrowing twice, and I only borrowed once. I received a letter in the mail last week stating that if I do not pay the amount due by 2/15, they will follow legal process to collect. They want twice amount due. I thought that they only had 1 year to collect after my dismissal. Can they do this? Please advise.

Thank you.

#2 pg1067


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Posted 11 February 2013 - 08:55 AM

"They" are doing it, so it seems obvious that they can. I'm not sure where you got the idea that a creditor may only seek to collect a debt for a year after dismissal of a bankruptcy action. Creditors who sue after expiration of the relevant statute of limitations may have their lawsuits dismissed for that reason, and third party debt collectors are similarly constrained by the Fair Debt Collection Practices Act. However, original creditors may legally seek to collect debts by means other than suing forever (subject to any applicable state law that might exist).

#3 Guest_FindLaw_Amir_*

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Posted 11 February 2013 - 11:17 AM

What state is this concerning?

#4 Tax_Counsel


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Posted 11 February 2013 - 11:49 AM

I thought that they only had 1 year to collect after my dismissal. Can they do this? Please advise.

Thank you.

Your bankruptcy was dismissed. I'll assume that means that you didn't complete the plan and that the debts you had were not discharged. If the debts were not discharged, then the creditor may of course resume collection of them after the dismissal. I'll also assume that the statute of limitations to sue had not expired when you filed the bankruptcy petition. Filing the petition typically suspends (tolls) the running of the statute of limitations. So, typically the creditor would at least have whatever time was left on the SOL when you filed the petition to sue you to collect. If the SOL is gone, the creditor could not successfully sue you, but it may still be able to take other actions to collect. (The case law interpreting the federal Fair Debt Collection Practices Act (FDCPA) in at least some jurisdictions is that third party debt collectors may not make any collection efforts after the SOL has run out, but the original creditor is not regulated by that Act.) A lot depends here on the orders that were entered in the bankruptcy case, the details of the debt, and the applicable state law. You might want to ask your bankruptcy attorney if any orders in the case restricts what this creditor may do as a starting point.

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