Is it legal for a third party to buy a credit card debt while you are in chapter 13?

Not ask for it during chapter 13 process(not listed as part of debts) then sue for it later?

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Posted December 17th, 2011 in Bankruptcy Q And A. Tagged: , .

One comment:

  1. rowlfe:

    As far as a bank is concerned, money you OWE is an asset on their balance sheet. You are talking apples and oranges here. They can sell assets at any time to someone else. If you failed to report this as one of your debts, then you only have yourself to blame when it comes to being refused for additional credit! Generally a bank will sell your debt to another to raise cash. If you have a debt of $10,000 to bank A, they may sell this to another bank for $8,000 in cash NOW. You STILL owe the $10,000 but now you owe the money to bank B. I do not understand why you say this debt is not listed as one of your debts with the court… As I understand chapter 13, all that happens is your debts becomes "interest free" and I can see NO reason WHY you would exclude some of your debts from the court. The excluded debts would STILL accrue interest and late fees which would seem to me to be a stupid thing to do! Isn’t the whole point of chapter 13 to pay off your debts and simply making it a little easier by relieving you of the interest? It is perfectly legal for bank B, the new owner of your debt to haul you into court if you are not paying per the terms of your contract. YOU erred in not including this debt in the package. Had it been included, bank A could NOT have sold it to bank B which is one way how chapter 13 protects YOU. It is YOUR FAULT for leaving yourself open to bank B raking you over the coals to get their money when you "forgot" to include this debt in the chapter 13 package… Whoever advised you to exclude this debt, was STUPID…

    December 17th, 2011 at 7:00 pm

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