filed ch 7 and concern about types of collectors

What is the name of your state? CA

Background: 6 cc in collections. Made paymts of $1200 to one and $1200 to another in the last 90 days because they threaten to sue me and garnish my wages. Of course, I gave in. A third one said I have to setup 3 payments of $7000 each to pay off my $21000k in 3 months or sue. At that point, I filed ch 7. SHould I be concern about preferential treatment?

Now, my other issue. Of the 6 collections, 3 of them are with law firms in the business of collecting debt. The other 3 are not law firms. Is there more of a tendency for law firm collection agency to want to challenge a discharge.

I am stressing out and cannot eat, sleep, or work. But I need to know your honest opinions.

[Elmo-1]

Both payments will be considered preferential, but it won't matter because the money you paid both of these guys within 90 days of filing will be recovered by the Trustee. You keep the exempt portion and the non-exempt funds are shared with all your other creditors.

Outside of the portion you might be able to claim as exempt, it won't matter one iota in your filing. Preference payments are only a problem if you re-paid a loan to a friend or relative within 90 days of filing. Don't concern yourself over those two payments, it may actually help that they are preferential.

The fact that law firms are in the business of collecting debts doesn't give them any more rights than any other collection agency. They’re typically more successful collecting unsecured debts because 1) they use legal remedies to the fullest extent, such as bank account garnishment, etc, 2) maximize debtor contact and 3) they’re more effective with their scare tactics as the average debt-ridden consumer may feel they’re only one slick-trick away from the slammer. Notice their advantages over standard collection agencies are all pre-bk. Bk evens the playing court.

Go to the following site to read how one Texas law firm in the business of collecting unsecured debts operates:

[url]http://www.taylorpc.net/NARCA%20Spring%20Collections%20Conference,%20Washington,%20DC,%20April,%201999.pdf[/url]

The fact is, in Bk lawyers have to adhere to the law just like any other collection agency. When you file, you’re protected by the law and they know it. If the debt is dischargeable, there’s nothing they can do. And more than anyone else, they know when to throw in the towel. Just make sure you use an attorney to file. Going pre-se against legal collection agencies could be a big headache. Now that you’ve filed, get some sleep

Thanks Elmo. They are still calling me. Can I ignore them or call them back and tell them what I am doing?

[Ladynred]

If you included those CA's in your BK filing, then you need to remind them that they are violating the automatic stay by continued collections and then you need only give them the name and number of your attorney. If they call you again after that, then its time to let your lawyer know they are continuing to violate the Stay.