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When someone goes through bankruptcy, their debts (with the exception of student loans and the IRS, etc) are wiped out. Gone.

But apparently some banks are keeping those debts alive and on the credit report, despite court rulings. They sell the debts to debt buyers, and continue to collect from the debtor, despite the fact that the debt has supposedly been wiped out.

The Justice department is starting to take a look at these practices.

If enough data is found to back up the claims, this might be interesting. But it's also possible that the banks will stop the practice for a while, (like when you're at camp, and it's lights out, and you see the counselor coming, so you dowse the flashlights and hide the cards) then start up again when the heat's off.

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