The goal of individuals who file bankruptcy is for it to be over as quickly as possible. In fact, most attorneys who file Consumer Bankruptcies (Chapter 7 and Chapter 13) want to get your case in and out the door as quickly as possible. Once the case is filed and the meeting of creditors has occurred the case is over and it is time to move on to the next case.
From A To Zombie.How to Kill Zombie Debt!
The goal of individuals who file bankruptcy is for it to be over as quickly as possible. In fact, most attorneys who file Consumer Bankruptcies (Chapter 7 and Chapter 13) want to get your case in and out the door as quickly as possible. Once the case is filed and the meeting of creditors has occurred the case is over and it is time to move on to the next case.Both Consumers and Bankruptcy Attorneys need to know that there is more to a case than filing the petition and going to the 341 Meeting. You need to talk to your attorney what he or she will be doing after discharge. Despite debt being lawfully discharged and the Bankruptcy Judge having issued an order that you are not responsible to make payments- that does not mean the debt is out of your life. The debt buying industry has developed a system to buy and sell discharged bankruptcy debt. This type of debt has been nicknamed "Zombie Debt" because it is almost impossible to kill and makes its appearance at the worst possible time.At this point in the article the logical response would be disbelief. Let me share this anecdote:Clients filed a Chapter 7 bankruptcy and were discharged in 2006. Long after the bankruptcy case was closed the Clients were attempting to purchase a used car. The finance manager at the lot had sent the deal to several lenders but none would finance the purchase. The bankruptcy filing was not a problem but the $432.85 owed for a credit card debt was a deal breaker. The clients knew that this was a debt included in their Chapter 7 Case Clients then called me, their bankruptcy attorney, and wanted to skin me alive. They had filed Chapter 7 and I had not taken care of this debt. They were standing on a car lot being denied credit. They were embarrassed, frustrated, angry that this was happening. After getting over feeling about an inch tall I looked at the petition and found the debt had been listed and that the Bankruptcy Notice had been send to the credit card company not once, not twice but on three separate occasions. It took about a week but finally after the discharge notice was sent to the finance company and a deal was struck.This scenario was my introduction to Zombie Debt. I had done everything I knew to do help my clients but their problems were not fixed- problems they had paid me hard earned money to resolve. Banks, finance companies, debt collectors and Wall Street Bankers make tremendous profits by participating in the market of buying, selling and collecting upon Zombie Debt.In above anecdote, the debt collector attempted to recover money by leaving discharged debt on consumer's credit report. This practice was discussed in an article by Liz Pulliam Weston of MSNBC. It is not an honest mistake or an oversight committed by a clerk making data entry. This is an intentional and deliberate attempt to collect debts which violates the law. Leaving debt on a credit report is a soft collection attempt but there are times when debt collectors dip into their bag of abusive tactics by making calls to the consumer, their family or employer.Although Illegal, Zombie Debt collection is very lucrative for debt collectors. It can be purchased for pennies on the dollar and then the collector makes demand for the entire amount. In addition the debt collector is shielded from the consumer as the guys at the car lot, the furniture store or the mortgage company are the ones delivering the news of credit denial. The worst part is that it is successful because there are not enough consumers who know that they have legal rights to stop after bankruptcy debt collection.Without doubt, this behavior violates the United States Bankruptcy Code, the Fair Debt Collection Practices Act (FDCPA), the Fair Credit Reporting Act (FCRA), and State Consumer Consumer Protection Laws (UDAP). All of these laws are in existence to protect people who have filed bankruptcy from being subjected to abuse and harassment due to discharged debt.In order to best protect consumers from after bankruptcy discharge debt collection it is necessary to start planning at the very first meeting with your bankruptcy attorney. Ensuring that your legal protections are in place provides should provide consumers with great peace of mind. When hiring a bankruptcy attorney you should ask, "What are you going to do to protect me after discharge?" At a minimum you should expect your attorney to pull a copy of your credit report from the three credit reporting agencies, (Equifax, Experian & Trans Union).Zombie Debt can be stopped. It requires focus and planning - but you should expect that your lawyer can jab a wooden stake in the heart of Zombie Debt.The Kentucky Consumer Law Group, headed by Brian T. Canupp. Brian has spent the majority of his practice assisting consumers who need Bankruptcy Relief. In 2008 the idea of KCLG began to form its mission - to use every tool available under state and federal law to protect consumers. In the last two years Brian has attended Lisa Wright's Fair Credit Reporting Act Boot Camp in Atlanta, Peter Barry's Fair Debt Collections Act Boot Camp in Chicago and Max Gardner's Bankruptcy Boot Camp in Casar, NC. This training, combined with getting in the trenches is allowing Brian to assist consumers with all types of consumer law problems.Article Source: http://EzineArticles.com/?expert=Brian_Canupp
From A To Zombie.