CCB and voilation of Bankruptc

Discussion in 'Credit Talk' started by Daughter-i, Jan 17, 2001.

  1. Daughter-i

    Daughter-i Guest

    This question is for the experts. My Mother-in-law has a Cross Country Bank account and was making payments through CCCS. She made her October payment, but filed for Chapter 7 on Nov 8th. The CCB payment was due Nov 27th. On Dec 18th she had the hearing for creditors. On Jan 8th she received a call from Gulf States collection agency about her CCB account. My question is, is it legal for CCB to sell her account to a collection agency when she is in the middle of bankruptcy proceeding? The bankruptcy is due to be discharged around the middle of Feb. I suspect that CCB resold the account as soon as they received the bankruptcy notification, hoping to at least get a few dollars instead of losing the entire amount.
  2. Saar

    Saar Banned

    RE: CCB and voilation of Bankr

    A lender does not need the debtor's consent to sell a debt.

    Have her send the collection agency a Cease & Desist letter. Even if they ignore it, they won't be collecting anything after next month.

  3. lisa

    lisa Guest

    RE: CCB and voilation of Bankr

    I agree. The lender can sell the account to who ever they want. The company that bought the account probably didn't know about the bankruptcy filing. It really isn't a big deal--just give them the bankruptcy info next time they call.
  4. Daughter-i

    Daughter-i Guest

    RE: CCB and voilation of Bankr

    My Mother-in-Law told Gulf States about the bankruptcy when they called. She also contacted her lawyer to be safe. Gulf State has not called the lawyer yet. I tried reading the bankruptcy laws and they appear to state that ALL collections attempts must stop as soon as they receive notification that the papers have been filed. I was just wondering if this included selling the account to a collection agency. We are worried. I just thought it was funny that CCB not only rips off its customers but also collection agencies. I guess they will try to make a buck any way they can.
  5. John Shimm

    John Shimm Guest

    RE: CCB and voilation of Bankr

    It doesn't matter. Whatever is included on the sheets for the BK, regardless of whether CCB sold it a day or a week later, is what matters. If CCB was on there, there's absolutely nothing to worry about.

    Give the information (collection agency name, address, number, etc.) and let him handle it. That's what you paid him to do. You should NOT have to send a cease & desist letter yourself -- again, let the attorney handle it.

Share This Page