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Can Creditors Collect Old Debt After Dismissal of Bankruptcy

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  • 10-20-2016, 07:58 PM
    futurefree
    Can Creditors Collect Old Debt After Dismissal of Bankruptcy
    My question involves collection proceedings in the State of: I lived in IOWA at the time of incurring these debts but now live in CALIFORNIA I filed bankruptcy in 2010. I was only able to get a Chapter 13. I paid on it for about 3 years, then job changed, I could no longer pay so it was dismissed (not discharged). Now, 6 1/2 years after the filing for the bankruptcy a collection company sends me statements for the balance owed 3 different credit cards, saying they bought the debt at around the time of the bankruptcy.

    What are my rights and how far can they go to collect this debt? If they do not have my original documents can they collect or get garnishment? I am self-employed so don't receive a check but could they in any way get access to my bank funds?
  • 10-21-2016, 07:48 AM
    Mr. Knowitall
    Re: Can Creditors Collect Old Debt After Dismissal of Bankruptcy
    A creditor has a brief opportunity following the lifting of the automatic stay to pursue a debt for which the statute of limitations would otherwise have run during bankruptcy proceedings under federal law, and may have a greater period under state law. If the statute of limitations has run, the creditor may demand payment but they cannot lawfully threaten to sue you over the debt. If the statute has not run, the bankruptcy is irrelevant.

    Read this.

    Quote:

    Quoting 11 USC Sec. 108(c)
    (c) Except as provided in section 524 of this title, if applicable nonbankruptcy law, an order entered in a nonbankruptcy proceeding, or an agreement fixes a period for commencing or continuing a civil action in a court other than a bankruptcy court on a claim against the debtor, or against an individual with respect to which such individual is protected under section 1201 or 1301 of this title, and such period has not expired before the date of the filing of the petition, then such period does not expire until the later of —

    (1) the end of such period, including any suspension of such period occurring on or after the commencement of the case; or

    (2) 30 days after notice of the termination or expiration of the stay under section 362, 922, 1201, or 1301 of this title, as the case may be, with respect to such claim.

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