Creditors question

[jakebabe]

We filed for BK 13 and have had the 341 meeting. We are now waiting on the creditors responses. We had been unsucessfully trying to settle these accounts on our own for the past 18 months and no payments were made in that time. My question is: all of the accounts have been charged off. What if some of the creditors do not respond? Do we still have to pay them? Also we did manage to settle with 3 companies - is that considered paid in full or can they come back on us for the amount they had to write off?

[Flamingo]

Once you file for Chapter 13 and complete your Plan and are discharged, no creditor listed in your filing can come after you for any portion of the discharged debt. If they do, contact your attorney who handled your 13.

If they were part of your filing and did not file a claim, that's their tough luck and they cannot come after you.

As to your question about the companies you already settled with, were you forgiven a portion of the debt and paid the rest in full or just paying on a debt that was made smaller by a portion of it being forgiven? If they forgave a portion and you paid the rest in full, that debt is done but you will be responsible for taxes on the forgiven amount in the year the debt was forgiven (you will receive a 1099 from the creditor). If they forgave a portoin and you are still paying on a smaller amount of your original debt, take up the matter with your attorney as I am not certain if they will want the forgiven amount paid back if you file BK on the remaining portion.

[jakebabe]

Flamingo - thanks for the reply and clarification to my concerns. Sounds like I am ok. We offered and the creditors accepted our settlement amount and we did not have to pay anything else to them. The paperwork shows the accounts as settled and I did not receive 1099's from them last year. The 3rd party collection company that had the accounts was not real bright and messed up several times in my favor so I am hoping those accounts and dead and buried!