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Why You Might Get Paid For Your Chapter 13 Bankruptcy

Nothing in this blog should be taken to suggest that you should file bankruptcy with the intention of getting paid. That would be silly and I want to be clear on that, do not file a bankruptcy with the intention of making a profit. If you have ALREADY filed a Chapter 13 Bankruptcy then I have some good news for you, there may be some hidden treasure waiting in that bankruptcy for you.

I have talked about debt buyers in many of my old blog posts. If old credit cards, small bank loans, medical debt or certain other consumer debts are not paid, sometimes the creditors sell the right to collect on the debt to other companies. Debt buyers are often careless with their court papers. Most people who have filed a Chapter 13 Bankruptcy have debt buyers in their list of creditors, even if they do not realize it. Many debt buyers have filed claims in the chapter 13 bankruptcies asking for their cut of the consumer’s assets, these are called “Proofs of Claim”. Many of the Proofs of Claim that the debt buyers file are past the legal expiration date of the date. It had been our position that these claims were illegal and we should be able to sue the debt buyers on behalf of our clients.

As we were preparing to file lawsuits about these illegal Proofs of Claim, a high level court decision came down confirming that it is indeed against the law to file a Proof of Claim past the legal expiration date of the debt. Since then, we have filed a number of lawsuits for our clients on this issue and we have been having a very high rate of recovery.

If you have a Chapter 13 Bankruptcy which has been active at any point in the last two years, our office is very interested in speaking with you. We may be able to go after some of your creditors for filing improper Proofs of Claim. Please contact our office.

This document has been provided for informational purposes only and is not intended and should not be construed to constitute legal advice. Please consult your attorney in connection with any legal issues related to the matters discussed in this article as the applicability of state, local and federal laws may vary.

Categories: Bankruptcy
  • ABC News
  • American Civil Liberties Union
  • CBS 4
  • CNN
  • Daily Business Review
  • Florida Trend's - Florida Legal Elite 2014
  • Florida Trend's - Florida Legal Elite 2014
  • National Association of Consumer Advocates
  • National Association of Consumer Bankruptcy Attorneys
  • NBC News
  • National Consumer Law Center
  • The New York Times
  • Avvo
  • Avvo
  • Avvo
  • Avvo
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