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Bankruptcy - Proof of Claim Filed By Junk Debt Buyers

By M. Stan Herring

While we don't practice bankruptcy law, we do get calls from time to time to help bankruptcy attorneys who are dealing with various types of improper conduct from creditors and particularly from junk debt buyers. In this fascinating post by Michael Doan, he talks about a proof of claim filed by a debt scavenger who, amazingly, did not even own the debt but was planning on buying the debt. Here is an excerpt:

So while you may have listed Sears, Citibank, and a Shell mastercard in your case, instead you now have claims from Asset Acceptance Corp, B-Line, eCast, Resurgent, and the like. The biggest problems with these claims is that most these debts are VERY OLD and past the statute of limitations to collect upon. Of even greater significance, is the fact that these debt scavengers may have the WRONG DEBTOR or may not have even bought the proper account in the first place!

Stay involved in your bankruptcy case and ask your bankruptcy lawyer what your options are if you have a false proof of claim filed. Often we can go after the junk debt buyers who do this and sometimes that can mean money to you or at least money paid into your plan which helps you get through the bankruptcy quicker.

Full post as published by Alabama Consumer Blog on February 24, 2008 (boomark / email).