Some debtors may get confused about the aspect of listing all debts when
you file your petition. You are required by the bankruptcy court to submit
all details in relation to outstanding debts, including creditors that
are owed and their outstanding balances. But, what happens when more than
one collection agency gets a hold of one delinquent debt? Do you have
to list each agency or just the original creditor?
Your Dallas-Fort Worth bankruptcy lawyer or trustee may advise you on how
to list your creditors and debts. In many cases, listing the original
debtor is good enough, but if you have information regarding the collection
agency that has the same debt, you may want to include this information
on the list. In simpler terms, a creditor will charge off an account after
it has been left unpaid for a certain period of time, depending on the
type of debt it is.
Then, a creditor will either assign the debt to a collection agency to
continue collection efforts on their behalf, or they may sell it to a
collection agency who then obtains the right to collect what is owed on
the balance. This is why fees and interest accrues on such balances. Because
it is possible for a debt to change hands depending on how old it is from
one collection agency to another, it can be helpful to pull your credit
report prior to filing bankruptcy to ensure all creditors will be listed.
If you file bankruptcy and a collection agency contacts you about a debt that you already included
in your filing, you or your attorney can forward your bankruptcy case number to the agency so they can update their records regarding the debt. As always, review your situation with your attorney or bankruptcy expert.
Reference:
http://www.foxbusiness.com/personal-finance/2013/08/27/list-all-collection-agencies-in-bankruptcy/