questions about debt and chapter 11...
I am being told by a debt collector that i owe money on a house that was supposedly 'voluntarily surrendered'. I did some digging and learned that the original mortgage company went bankrupt and the collector that has it now is a different company. the creditor went bankrupt through chapter 11 and no longer exists. here's my question--
i think what happened was they filed bankruptcy on their deficiency balances, it wouldnt make sense to file bankruptcy and not do that when the deficiency balances would be a huge amount nationwide. if they did that, it is my understanding that no other collector could try to collect the debt legally because it was ni the bankruptcy is this correct? also, if it is, how would i find out if they declared bankruptcy on their deficiency balances? they dont exist so i cant just call them up. any thoughts?
Quote:if they did that, it is my understanding that no other col
Quote:
if they did that, it is my understanding that no other collector could try to collect the debt legally because it was ni the bankruptcy is this correct? |
Your [alleged] debt was their asset; you did not file BK, the mortgage company did, and the asset was probably sold to another entity as part of the chapter eleven.
Send the collector a DV letter, or if you never had a stake in this property, dispute as ID theft.
no, once they sold this house, the remaining balance isnt an ass
no, once they sold this house, the remaining balance isnt an asset its a deficiency balance and thats what happened in this case. right now i am looking for everything they did wrong and continue to do wrong
the acct isnt mine, i am just trying to make sense of everything, have already started the ball rolling about disputing and all that but the current collector hasnt replied, they only report on credit report. original was oakwood acceptance and this one is vanderbilt mortgage, oa went out of business and vanderbilt hasnt responded to a validation request but continues to report and verify for the bureaus. i am just looking for every avenue in this case
Then file ID theft complaints with your police department and th
Then file ID theft complaints with your police department and the FTC.
If it's not yours, then I wouldn't worry too much. They have th
If it's not yours, then I wouldn't worry too much. They have the burden of proof of showing it is your account.
I think you're getting "deficiency balance" confused somehow. Not sure how, but they would not "go bankrupt on their deficiency balances." They can only go bankrupt on the creditors they owe money to. Since deficiency balances are money owed to them, they could not possibly go bankrupt on them.
Now all those deficiency balances, being money that is deemed bad debt, may have pushed them into a situation where they can't pay their own bills. So all the deficiencies may have cause them to file BK.
But whether those balances sit on their books as an asset, or if they charged it against their loss reserve as bad debt, nonetheless they are still legally entitled to collect on a deficiency balance.
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no, once they sold this house, the remaining balance isnt an asset its a deficiency balance |
Accounting-wise, all those deficiency balances can still be classified as an asset (intangible for the time being). It's just that their loss reserve acts as a contra that adjusts their balance sheet to zero for all those accounts. Think of it almost like the way a company would depreciate a car -- after 5 years the car is worth nothing on their books. But they can still sell that car, and anything they sell it for becomes income.
When they filed Chap 11, some holding company probably came in and took over, sold off it's accounts and any other remaining assets, and then closed shop.
If you really want to dig a little, you can get a PACER account (pacer.psc.uscourts.gov/). Find out which US court they filed Chap 11 in, go to that court's site, and you can use PACER to look up anything about their bankrupcty (costs 8 cents per page that you download). You will be able to see who they went bankrupt on. And I think you will find that they did not include all those customers who had deficiency balances.
