Quantcast
Channel: Daily Bankrupt Company Updates | Bankrupt Company News
Viewing all articles
Browse latest Browse all 4593

SquareTwo Financial Objection Filed

0
0

The U.S. Trustee assigned to the SquareTwo Financial case filed with the U.S. Bankruptcy Court an objection to the Company’s Joint Prepackaged Chapter 11 Plan of Reorganization.

The Trustee asserts, “The United States Trustee objects to confirmation of this pre-packaged plan because it adversely impacts creditors who will receive no distribution and likely have no idea that they may, in the future, be affected by these bankruptcy cases. Indeed, if the Plan is confirmed, general unsecured creditors will unknowingly release officers and directors for such things as violations of the Fair Debt Collection Practices Act and other similar state and local statutes and regulations, which is inconsistent with the concepts of notice and fairness.”

In addition, “The Debtors’ primary business is to purchase, manage, and collect charged-off consumer and commercial accounts receivable. These ‘bad debts’ are purchased by the Debtors from credit issuers for a fraction of the face amount of the debt. On information and belief, the purchased debt is bundled in packages, the debt is vetted by neither the seller nor the purchaser, and most of the information about the debt typically takes the form of an Excel spreadsheet listing names, social security numbers, and account balances. In fact, some of the debt that is sold no longer exists, as it (i) has been discharged in bankruptcy, (ii) has already been paid, or (iii) is outside the statute of limitations for collection actions. In addition, consumers may not find out that their debt has been sold until many years after the sale.”

Read more bankruptcy news.

The post SquareTwo Financial Objection Filed appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


Viewing all articles
Browse latest Browse all 4593

Latest Images

Trending Articles





Latest Images