Bankruptcy

I Have a Bone to Pick with a Credit Union

By Bill McLeod, Esq.

I also have a bone to pick with the firm they have retained for collections. I?m not going to name them ? for now. But I am compelled to share what happened to a former client.

This client filed chapter 13 in 2000. The credit union didn?t file a proof of claim on time. Instead, it filed a proof of claim along with a motion asking the court?s permission to file the proof of claim late. The credit union claimed it did not get notice, even though the creditor matrix (the list of creditors that get notice in a bankruptcy matter) had both its local address along with an address in Florida (which was the address also appearing on the billing statement). The court set the matter for a hearing for December 5, 2000.

Credit union?s attorney appeared along with me on that date over 7 years ago. After the hearing, the court denied the motion to file the proof of claim late. Thus, it did not get paid in the chapter 13. In 2003, the client successfully completed the chapter 13 plan and received a discharge.

Today I received a call from the client who tells me that a letter was received from an attorney on behalf of the credit union seeking payment of the debt.

Full post as published by McLeod Law Offices on May 19, 2008 (boomark / email).