I wonder if some of those "counseling" people send fake BK notices to creditors as a delaying tactic.
I don't know about the counseling people, but I'm sure there are people who tell creditors they're going to file BK and then never do. Some probably as a stalling tactic, others probably just change their minds and decide not to file.
I remember there was a thread here quite a few months ago, in which Prosper (Andrew, I believe, but could have been someone else) stated (obviously in an email or Prosper's blog or forum, which was copied here) that Prosper marked loans BK when they were informed by the borrower that a BK had been filed. I pointed out at the time that was a huge loophole, unless Prosper had the appropriate mechanisms in place to make sure such loans were "unmarked" if official documentation of the BK was not promptly obtained by Prosper, but I don't think Prosper ever confirmed that was the case. Given Prosper's general level of (in)competence, I would guess that the odds are better than 50-50 that Prosper bungles at least some reported BK's. Yet another reason why a lawsuit against Prosper is eventually going to be necessary, so that discovery can shed light on whether Prosper is adequately protecting lenders on "BK" loans.
