Collection Letter after Discharge from Bankruptcy
Good Morning: I have been discharged from bankruptcy since September 2009 but I just received a letter from a collection agency regarding an overdue account with a bank.
They are threatening that if I do not pay off the debt in the amount of $32,292.86 within 30 days it will be reported and registered with the various credit bureaus across Canada!.
Why would the bank refer this matter to a collection agency for recovery when all debts were covered in the bankruptcy?
How do I respond to the collection agency?
It’s common for banks and other creditors to refer debts to collectors for collection and then to NOT inform the collectors of a bankruptcy.
I suggest you send the collector a copy of your Certificate of Discharge to confirm that your debts have been erased.
- Earl Sands, Bankruptcy Canada (LIT) Licensed Insolvency Trustee