What happens when you owe a debt to a company that filed bankruptcy?

[cruz50]

I had a debt with Citibank but when I was unable to pay they sent the account to New Century Financial. Citibank has no record of my account. New Century Financial is listed on my credit report as the agency I owe the alleged funds to BUT they filed bankruptcy this year. Now it seems that New Century Financial has illegally sold my information to a law firm named Pressler&Pressler. The NJ state attorney general has a lawsuit pending against Pressler&Pressler. there is also a petition with more than 700 signatures saying that Pressler&Pressler has violated their consumer rights. I have already filed complaints with the FTC and NJ attorney general.

[shashank]

I had a debt with Citibank but when I was unable to pay they sent the account to New Century Financial. Citibank has no record of my account. New Century Financial is listed on my credit report as the agency I owe the alleged funds to BUT they filed bankruptcy this year. Now it seems that New Century Financial has illegally sold my information to a law firm named Pressler&Pressler. The NJ state attorney general has a lawsuit pending against Pressler&Pressler. there is also a petition with more than 700 signatures saying that Pressler&Pressler has violated their consumer rights. I have already filed complaints with the FTC and NJ attorney general.

This is how the credit game works...

You owed citi, they sold your information to New Century Financial to clear your debt off their books. New Century went under and sold your debt to Pressler&Pressler. Right now Pressler owns your debt owed. However, if they came upon this ownership on illegal grounds then the ballance you owe is forfeit and you will no longer owe the ballance. Citi no longer has any records of you owing money because New Century paid for your debt.

File an injunction on the grounds that there is a case pending vs your credit agency and see what happens. If the STAT AG is involved against them it is not small taters and will most likely result in Pressler being sued in civil action with a class action lawsuit. Good luck!

[forde]

You borrowed money.
You didn't pay it back.
You still owe the money.
The question is to whom.

Your creditors *are* allowed to sell your loan. Thus Citibank could sell it to New Century, New Century could sell it to Pressler. Each buyer bets how much work it will be to collect the money and pays accordingly. (Sometimes it's pennies on the dollar.)

Each buyer will make an attempt to get you to pay up. Some collectors are more aggressive than others, but that doesn't mean they have violated any laws. (Some will.)

But the bottom line is, you borrowed the money and never paid it back. PAY UP.