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unsecured debt after discharge.to pay or not to pay??

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    unsecured debt after discharge.to pay or not to pay??

    BK was discharged 03/2009. We had a credit card and a signature line of credit thru the same bank where our checking account was. We had originally told the atty we wanted to re-affirm these two debts, and she said no problem. But our credit report shows the credit card discharged thru the BK. We only recently stopped paying on it as we were unaware (even though the bank closed both accounts right after the discharge). Upon calling the bank, we were advised that per the BK laws, it is against the law to re-affirm any unsecured debt thru a BK. However, the line of credit still shows active/open on our credit report. We have disputed it thru the reporting agencies and it keeps coming back that the debt is valid and verified thru the bank, although they are the ones who told us that we COULD NOT reaffirm the debt after BK. So now we dont know if we should keep paying on it or not as we are trying to make timely payments on all accounts opened post-BK to rebuild our credit. We are in FL, can anyone tell me what the BK laws say about this in FL?

    #2
    The debt has been discharged, and you are not now legally obligated to repay it. If you WISH to repay it, that is a choice that is up to you, and your paperwork will have an explanation of the debts that have been discharged, and the debts that have not. The ones that are not will include, taxes, court-ordered payments, such as child support payments, etc., and will contain language stating to the effect: "...and including any debts discharged, that you wish to repay."

    Now, my thought on the matter is that it is better to concentrate on moving forward, instead of looking back.

    Good luck!
    "To go bravely forward is to invite a miracle."

    "Worry is the darkroom where negatives are formed."

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      #3
      I agree with Mrs. Cat. The choice is yours, but you are not obligated to repay the debt as it has been discharged in the bankruptcy.

      Best wishes on a happy "fresh" start!
      Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
      Status: (Auto) Discharged and Closed! 5/10
      Visit My BKForum Blog: justbroke's Blog

      Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

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        #4
        Thanks for the info. I guess i wasnt really clear. My question is is it true that you CANT affirm unsecured debts and thereby they wld all be dischgd thru the BK?

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          #5
          Originally posted by katt3344 View Post
          Thanks for the info. I guess i wasnt really clear. My question is is it true that you CANT affirm unsecured debts and thereby they wld all be dischgd thru the BK?
          You can reaffirm them, or should I say "attempt" to reaffirm them, but it's moot. The Judge won't let it happen because it is "not in the best interest" of the debtor... ever!
          Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
          Status: (Auto) Discharged and Closed! 5/10
          Visit My BKForum Blog: justbroke's Blog

          Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

          Comment


            #6
            Hi katt,

            Your debt was discharged but for some unknown reason the bank has left the acct open and/or is reporting it open to the credit bureaus.

            If you are trying to rebuild your credit, this may not be a bad thing. How is the acct notated on the credit report? If it doesn't have a negative notation (like late on payments, overlimit) and is not maxed out it will help your credit score. Of course this means you have to keep paying on it. Is the balance worth having the line of credit?

            If it does have negative notations or is maxed out, then to get it off your credit report keep pestering them, send the BK notice and the creditors matrix showing the acct listed. Credit bureaus are very bureaucratic, be persistent.
            Go to the bank and ask for a manager, have your BK notice in hand, don't leave until they close the acct.

            Good luck with this,

            Tom in Colo
            Ch7 filed 5/12/2010.....341 meeting 6/30/2010....report of no distribution 8/15/2010.....discharged 10/01/2010.....closed 11/09/2010

            Comment


              #7
              Thanks Tom!

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