Shamokin, PA asked in Bankruptcy for Pennsylvania

Q: If a debt is included in chapter 13 bankruptcy, can it be sold to a collection agency

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4 Lawyer Answers
W. J. Winterstein Jr.
W. J. Winterstein Jr.
PREMIUM
Answered
  • Bankruptcy Lawyer
  • Boyertown, PA
  • Licensed in Pennsylvania

A: Yes, and it happens frequently. There are companies out there whose business is to handle/service accounts of others that are deemed "bad", or "uncollectible", etc. Transfers of claims are specifically authorized by the Bankruptcy Code, and also occur in Chapter 7, 11 and 12 cases.

Timothy Denison agrees with this answer

W. J. Winterstein Jr.
W. J. Winterstein Jr.
PREMIUM
Answered
  • Bankruptcy Lawyer
  • Boyertown, PA
  • Licensed in Pennsylvania

A: Yes, if the transfer is done in compliance with Bankruptcy Rule 3001(e). There is also an Official Bankruptcy Form for a claim transfer- ` B210A Transfer of Claim Form (and Instructions).

Transfers of claims occur frequently in cases brought under Chapter s 7, 11, 12 and 13 of the Bankruptcy Code.

Timothy Denison agrees with this answer

Timothy Denison
Timothy Denison
Answered
  • Bankruptcy Lawyer
  • Louisville, KY

A: Yes. But it can be transferred but it doesn’t negatively affect you.

Stuart Nachbar
Stuart Nachbar
PREMIUM
Answered
  • Bankruptcy Lawyer
  • Livingston, NJ

A: Yes it can, during the bankruptcy, but it is still subject to any and all treatment it is accorded in the bankruptcy

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