Debt payment

[KSL]

In my bk there were a few local creditors that I wanted to pay just to keep on good terms locally, but have not been able to just because finances are so tight. I told them I would pay them, but I can't. What happens to these debts? Can they still try to get the money? Do I have to pay them since I told them I would, there is nothing in writing? I maybe made one payment to them, and I haven't been able to make anymore since.

[shark66]

All of the "dischargable" debt gets discharged in BK. And no former creditors can come after you once the process is over and done with.

If you really want to repay someone after everything is said and done, there's no law that prevents you from doing so.

Good luck.

[backtoschool]

I would be careful about paying any creditor either right before your bk or after you file. That would be considered a preferential payment and the trustee would just take it back anyway. If you included the creditors on your bankruptcy petition, they cannot come after you for the money.

[KSL]

I would be careful about paying any creditor either right before your bk or after you file. That would be considered a preferential payment and the trustee would just take it back anyway. If you included the creditors on your bankruptcy petition, they cannot come after you for the money.

My attorney advised me that I could repay the local ones to keep in good standing locally. A preferential payment is one that is over $600.00. If they were included in my bankruptcy they can't come after me even though I said I would pay them, or even though I made probably one payment to them after the discharge?

[shark66]

If they were included in my bankruptcy they can't come after me even though I said I would pay them, or even though I made probably one payment to them after the discharge?

If they were included in your BK they can't come after you. Period.

Good luck.

[backtoschool]

If you paid them after discharge, they cannot come after you. I was assuming you made a payment to them before filing and/or before your discharge.

[frogger]

It is a good thing to pay your local creditors in order to stay in good standing with them (if needed), however it needs to be part of your planning. In the meantime, continue to do business with them on a cash basis.

[AngelinaCat]

My attorney advised me that I could repay the local ones to keep in good standing locally. A preferential payment is one that is over $600.00. If they were included in my bankruptcy they can't come after me even though I said I would pay them, or even though I made probably one payment to them after the discharge?

Our attorney advised us that once we filed, if we paid even one creditor and none of the others, or entered into any kind of 'side agreement' with one, we ran the risk of having our entire bankruptcy dismissed and not being able to discharge ANY of the debt. You need to be very careful here.

Now, as others have said, AFTER everything is over and you have that Discharge Order in your hands, you have the option of repaying any creditor you wish. That will not be a problem.

[AngelinaCat]

A preferential payment is one that is over $600.00.

Backtoschool would tend to disagree with you. Her trustee picked up two $500.00 checks made several months apart to help her mother with mom's medical expenses, and ruled her an 'Asset Case' because of it. B2S had to pay that money back to the BK estate before her case got resolved.

[KSL]

What I mean by a preferential payment is one that is over $600 made to one creditor, and is made within a certain time period prior to filing. Once filing, no payments are supposed to be made until after discharge.

[backtoschool]

Backtoschool would tend to disagree with you. Her trustee picked up two $500.00 checks made several months apart to help her mother with mom's medical expenses, and ruled her an 'Asset Case' because of it. B2S had to pay that money back to the BK estate before her case got resolved.

This is absolutely correct AngelinaCat. The checks do not have to be individually over $600, they cannot total over $600 in a year.