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socrateaser
socrateaser, Attorney
Category: Bankruptcy Law
Satisfied Customers: 38910
Experience:  Attorney and Real Estate Broker -- Retired (mostly)
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can a mortgage company sell a debt to another company during

Customer Question

can a mortgage company sell a debt to another company during bankruptcy and not tell the debtor or court? can a collection agency try to make you pay a debt if it was discharged on bankruptcy?
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  socrateaser replied 6 years ago.
can a mortgage company sell a debt to another company during bankruptcy and not tell the debtor or court?

A: Yes. The bankruptcy stay and injunction prevents the creditor from taking any collection action against the debtor. Selling the debt to a debt collector, however, is not a collection action, because it doesn't directly affect the debtor.

can a collection agency try to make you pay a debt if it was discharged on bankruptcy?

A: No. If the debt collector does not immediately cease and desist in the collection effort, you can file an action for contempt in bankruptcy court and the court can award you damages and attorney's fees.

You can also complain to the Federal Trade Commission.

Hope this helps.

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