Parent of CACH LLC files for Bankruptcy

Square Two Financial Corporation, the parent company of bad debt buyer CACH LCC, has filed Chapter 11 bankruptcy.  From the looks of it, this was a "prepackaged" bankruptcy, with Resurgent Holdings LLC waiting in the wings to buy up the assets of the company. 

If you are being sued by CACH LLC, your case is expected to go on without interruption.  There may be a snag in getting documents (even more than usual) because of the need to integrate CACH's record system with Resurgent's.

If you are suing CACH, then you have my sympathy. Your case will likely be caught up in the bankruptcy and likely be stalled for a good long while at best.

In my opinion, Resurgent (and its subsidiary LVNV) is neither better nor worse than CACH, so from a consumer's point of view, it's probably neutral.

Of course, the irony in this is debt collectors are notorious for ridiculing consumers about not being able to handle their finances, yet CACH has joined the list of collectors that bought debt at 5 cents on the dollar which couldn't meet their obligations.

If you are being sued on a consumer debt in Indiana, please call the Consumer Law Office of Steve Hofer.  I will evaluate your case at no cost to you.

Have you received a 1099C letter from a debt collector?

I am collecting letters from debt collectors that threaten the issuance of a 1099-C (forgiveness of debt). There are a lot of different strategies that collectors are using to collect money using the threat of tax liability for foregiveness of debt. Often the collectors mis-state the law and the level of taxpayer responsibility. There are also some interesting legal issues now regarding the collection of accounts after a 1099-C has been issued. This should be completely banned, but at present it is not necessarily illegal. By the way, this is an issue where your vote in November can make a difference to your pocket book. If you vote for representatives who put the interests of Wall Street ahead of the interest of working people, you are going to end up with laws that allow banks to charge off a debt as a bad debt, so the bank takes a tax deduction, the consumer incurs a tax liability, then the bank sells the loan to a bottom feeder debt collector. The bottom feeder sues the consumer, gets a default judgment for the full amount of the debt plus interest and court costs. That's the kind of junk that is going on right now, and it really has to stop. Anyway, if you receied a 1099 letter from a debt collector, feel free to send it to me. If you want a referral to a NACA consumer attorney in your area, I will be happy to find one for you.