WANT to pay back?

[mylife05]

Hi. :o I am new. Unfortunately, I'm here, but I'm glad to have found this forum, with some great information, and others going through similar situations!

Strange question, perhaps... I guess I need help thinking through pros and cons (if there are any pros), to voluntarily paying back a debt. I filed Ch.7, and am currently waiting for my trustee meeting. Reaffirming my house and car, which are both current. My attny advised me to let all the other debts, which are unsecured, be discharged, and he actually wouldn't LET me commit to paying back anything else. I understand his point.

My expenses really do add up to my income, but I can't help feeling like I could squeeze out a little extra to pay back - for example - a small personal loan with a company that has been SO great to me, or a credit card I've had for YEARS, with a fairly good record, with a reputable company. I guess I want to try to salvage a relationship ? ("no hard feelings" kinda thing)... and maybe I'm wondering if it would help my credit in the future... especially with these creditors in particular.

So.... weird question? :p sorry. Anyway.... can I do it? Should I do it? Any thoughts or experience with this?

Thanks so much!

[HHM]

Its not going to make any difference on your credit, by law, any dischargable debt will be discharged regardless if you make a voluntary payment. Let the company show the good jesture as they should understand and accept that BK is a cost of doing business.

[robivi3]

I decided to keep my Credit Union's Visa card and thus retain the use of the CU itself, including the four time a year signature loans for $1000.00. I signed an agreement with the CU and that debt was not discharged and my realtionship has continued as normal except theat for a signature loan of over $1000.00 I have to be a year from the BK discharge.

If it is possible to keep certain relationships alive and useful it is to your benefit. I did it against my Attorney's advice. The thing is, he wasn't the one that the CU has helped over the years. These guys don't understand that even though they are a financial institution there can be very personal issues involved. My CU Prez. is also our Department Director, the board are my co-workers that i have known for twenty-two years. A thing like a default could have negative effects beyond my Credit report. He can't stop you and if you haven't filed at this point I recommend that you try to maintain at least one good relationship.

My Visa was not discharged, shows paid as agreed and is helping my CRA scores. If the loan company has a "relationship as normal" policy like my Credit Union then by all means pay it. If not, include them. As far as the Credit Card try to keep one. A friend of mine filed in 97 and decided to keep his AMEX Card, it turned out to be a good decision.

In Florida if you do not list the institution or you sign an agreement then that debt will not be discharged.

You are supposed to list all of your debts, another form allows you to list debts that will be repaid, secured and unsecured. I wrote off $58,000.00 and retained about 2500.00 in unsecured debt along with 2 Mortgages, 2 vehicles, etc... Incidentally, I was over the exemption limit, was honest, and yes it did cause some extra hearings and depos. When the Trustee Attorney asked about the CU repayment I explained the situation and his response was simply , "oh, ok". I believe that the hearings were in order to force the sale of my home even though in Florida he could not suggest or force it. I have alot of positive equity on my home (I paid 86,000.00 and right now the TH's in our complex are going for 200,000.00 to 215,000.00, my neighbors sold less than an hour after listing and that is typical, the market down here is under 350,000.00 snatch it FAST). He was not interested in any agreement that would not generate quick cash payments, and did not want used furniture or clothing or even jewelry. Finally he congratulated us and said, you'll get your discharge in a couple of days.

Nothing is written in stone, every situation is different, every State is different, try to keep at least one working relationship.

[mylife05]

Thank you for the feedback. Conflicting opinions... so I'd be interested in hearing more.... opinions.... experience...

robivi... I have already filed. I only reaffirmed house and car.

So, if I decided to do this, or to check into it further, how would I go about making arrangements to pay them? Or can I just make payments? Should I wait til after the Trustee meeting? I am just scared to do the wrong thing while I am in the middle of this.

Thank you!

[robivi3]

You have to get with your Attorney on that. I had to insist on it and he modified the documents before the Creditors meeting. Judge carefully and retain as few debts as possible, this isn't about feeling good. Do the phone work Monday and find out in writing about the policies of the smaller loan company. If they will still help you after BK you may consider continuimg the relationship, otherwise write it off. Bankruptcy is a right, it is factored in to risks the companies take. Do not act out of guilt. Remember, it is still a debt that you will pay monthly.

If the loan company is Household Finance/Beneficial or MBNA I suggest that you write them off, you will not get another loan from them even if you pay them.

Try to maintain less than $1000.00 in personal debt in the future. If you can do without it for more than seven days, you can save the cash to buy it. We ran on the assumption that we could be like our parents at our age. Post War (1947-1970 approximately) Economics were different and not the norm, it was an age of unbridled expansion and the American dream was mainly doled out to a white working pool, leaving some people to the side. It's still alive and well but not attainable necessarily by working longterm for a large Company as my parents did. Our parents also did not have the easy access to credit, i still remember my father getting a Mastercharge in 1966. His car payments were for two years. Bankruptcy made you a pariah, an outcast among your own, and it was likely that the people you defaulted on knew you. We have driven up costs by allowing ourselves to be driven into bondage with items that can never be paid and terms that forty years ago would have put a loan shark behind bars.

[Dawn1970]

Okay, you asked for advice and here's mine- Don't pay anybody back that you don't have to, regardless of how great they've been to you. Sure, they were being 'great' to you while they were still receiving payments from you. BK is never anything personal. And trust me, when you start making those installments to your lawyer, you might quickly change your mind about wanting to give them your money! I cannot think of any 'pros' to paying a debt your BK wipes out for you. Just my two cents.

[mylife05]

Thank you for your replies.

The small loan has about $700 left, and the pymts are $38 a month, with Wells Fargo. Yes, I plan on living on cash from now on, so I'm NOT real sure of my motivation (guilt? perhaps). The credit card I had in mind has a large balance, but is a fairly reasonable company (rates, policies, etc), and a company that also carries my auto and property insurance, so I wanted to protect the relationship... but it's probably better to NOT worry about it.... so I'm ready to forget that one. As far as Wells Fargo goes..... I guess.... its guilt (they have been very nice to me, tried to work with me on other loans - but my credit was too bad) .... but also, I figure if I pay this loan off, they may "be there" for me in the future in case of an emergency, or to help me with a car, which I may need in the next year or two.

[HRx]

I plan on living on cash from now on.

That's the mindset you need, if you plan on living a prosperous life after bankruptcy! Remember to pay yourself first every payday, and start investing some of your monies into IRAs, 401k etc.........

Good Luck!

[robivi3]

Wells Fargo, you are done with them, for life. Write 'em off, even if you pay they are done with you. Do not keep a card that has a large balance. Keep one with a low limit, low balance, if any. You need one card for car rentals or Hotel Rooms. If you keep a decent card you won't have to pay a high fee or a deposit to get a new one. With a family it is hard to deal with certain things without a major CC.

I have three boys all in size fourteen and up shoes. I have back problems and only wear Timberlands. I get them at half price from grapevinehill.com. Without a CC it is impossible to order them online. There are a hundred other issues familywise for which a CC makes life easier. Do not keep a high balance CC because of the great rates, you'll still be paying $200.00 a month payments! Keep a low limit, low balance CC even if the rates are not favorable. As you use the card pay it in full.

As I've said before anything involving work, like a Credit Union, where bosses and co-workers are ALWAYS on the Board, it is better to work things out. Maybe you can't be fired, but you can be denied promotions, bonuses etc... for any number of reasons. Anything involving work will have a negative impact.