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
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.