Repaying discharged creditors

[lostinmich]

Just a question or two....

Do people sometimes repay a creditor for a discharged amount? Is there any benefit? How long after discharge?

I know it sounds crazy but should I run in to some monetary windfall or I end up getting a job that pays significantly more, would there be any benefit in repaying?

I know.... probably not something that's very sensible but a lot of the big players in the credit market often have products and services that smaller places don't.

For example... I included Best Buy in my bk for an amount of $200. Not much but enough to keep me from ever getting a BB card again. Couldn't I offer to pay that back with the intention of getting credit through them later?

Forgive me if this sounds wacky... I've been drinking beer and celebrating the Labor day weekend. LOL

[HHM]

Yes, it is wacky; and no, there is ABSOLUTELY no benefit to paying a discharged debt.

There are no "brownie points" in the credit game.

[lrprn]

Do people sometimes repay a creditor for a discharged amount? Is there any benefit? How long after discharge?

No benefit whatsoever if the repayment goes to credit cards or loans from typical big lenders.

However, if you are repaying a family member who loaned you money before you filed, that can have obvious peace-keeping advantages for the family .

Also some filers will decide to voluntarily repay a family physician or dentist so that they can continue their patient relationship after discharge.

These two situations are the only ones that make any sense at all to repay a discharged debt. As HHM said, there are no advantages whatsoever to repaying any other creditors.

[veloguy]

Don't you want to not ever see a credit card bill again for the rest of your life?

No judgement or personal affront as I'm just beginning BK, but that thought is my, "light at the end of the tunnel". Cash only...

[Lindsay]

I don't plan on getting any more credit cards after filing either! I wouldn't be inclined to pay back any of my creditors anyway as the insane interest rates, hiding credit limits, and other games they play had a huge part in bankruptcy for us. Credit cards are the devil to me now! I shudder now when I see a credit card commercial on television. My husband and I didn't have our first credit card until we were over 30 years old. We had to have our utility companies and landlord write reference letters for our mortgage lender as we had nothing on our credit reports. We had never even financed a car before we bought our home. And when I look back, things were so happy then. The kids were small and cute (no teenage drama like now!) and there was little stress. My husband and I weren't at each other's throats constantly. The lack of a credit report scared me and we decided to acquire some credit cards to build our credit up and the rest is history. I'm prepared to live the rest of my life without credit.

I have heard on some message boards that people have actually paid back all of their creditors after bankruptcy, claiming that they felt a moral obligation. I've also read about a program that American Express has called "Oasis program" where you can get back in their good graces by paying back a discharged debt. I'm not sure why someone would want to do that unless they needed a corporate card for their job or business.

I've got to wonder about Discover card though. A family friend let me peek through his piles of bankruptcy papers and documents. He filed BK in 2004 on three different Discover cards (over $15,000 total). Now he has a brand new Discover Platinum at a great rate! I'm wondering how he managed this! I tried to find out the circumstances but he was a little evasive which I thought was strange as he gave me a huge pile of bankruptcy paperwork to take home to read, including his actual filed petition. I'm wondering if he paid back some of the discharged debt to get back in their good graces or if Discover is just a real forgiving company. So far Discover is the one that is the most aggressive collector for us. I can't wait to retain that lawyer!

[lostinmich]

Don't you want to not ever see a credit card bill again for the rest of your life?

No judgment or personal affront as I'm just beginning BK, but that thought is my, "light at the end of the tunnel". Cash only...

The thought of another credit card bill doesn't scare me. My BK was the result of a failed business and the fact that I used CC's and home equity loans to support it wayyyyyy too long. I've learned my lesson.

I already have 3 credit cards right now that I use monthly but also pay off every month. Since my discharge in March I have not paid one cent of interest to credit card companies and plan on doing that forever. My thinking is that places such as Home Depot and Best Buy offer 0% financing for stuff over a years time. That option is nice as long as one has the discipline to pay it off when required.

We live in a world where the credit score has a HUGE play in many aspects of life... mortgages, insurance, jobs, etc. It's tough to build a good score without credit cards but you have to be very careful and aware of your finances so you don't get caught up in the easy of them.

Like I said in my original post, this was just a thought not something I planned to do. It just irritates me that I'll NEVER be able to get a Home Depot (Citibank), Best Buy (Citibank), Chase, WAMU, Discover, etc card because I'm blacklisted.

Thanks for the replies!

[HHM]

Like I said in my original post, this was just a thought not something I planned to do. It just irritates me that I'll NEVER be able to get a Home Depot (Citibank), Best Buy (Citibank), Chase, WAMU, Discover, etc card because I'm blacklisted.

That is SOOOO, not true. Don't buy into the credit companies propaganda on the issue. Your credit will heal over time. In fact, for most people that maintain good credit habits after BK, their credit can be back to normal within 2 years after BK.

Go read through some of the posts in the "Rebuilding Credit" topic on this forum. For some of the members that have been around awhile, they have been out of BK for about a year and are getting regular credit card offers from all the major credit card companies you listed.

Also, you are giving your credit score to much credit (pun intended).

[lostinmich]

That is SOOOO, not true. Don't buy into the credit companies propaganda on the issue. Your credit will heal over time. In fact, for most people that maintain good credit habits after BK, their credit can be back to normal within 2 years after BK.

I'm sorry, I didn't clarify..... I'm talking about creditors that were included in bankruptcy. I realize one will be able to get credit cards soon after bk, they just won't be able to get credit with companies that were listed in bk.

[CindyLou]

Yep, living proof!! Just got Sears (citibank) in my husband's name....he filed with me....with a 4500 limit, no interest for 18 months...we bought our new TV on it. (of course we didn't even spend CLOSE to the limit!!!!!)

[HHM]

I'm sorry, I didn't clarify..... I'm talking about creditors that were included in bankruptcy. I realize one will be able to get credit cards soon after bk, they just won't be able to get credit with companies that were listed in bk.

Again, that is SOOOOO, NOT TRUE
(with perhaps the exception of American Express).

But as a I said in my previous post, it generally takes about 2 years to fully establish your credit after BK (granted, you will not get a Citibank platinum visa right out of BK, but I can almost guarantee, that you will probably be offered one 2 years after discharge).

[lostinmich]

Again, that is SOOOOO, NOT TRUE
(with perhaps the exception of American Express).

But as a I said in my previous post, it generally takes about 2 years to fully establish your credit after BK (granted, you will not get a Citibank platinum visa right out of BK, but I can almost guarantee, that you will probably be offered one 2 years after discharge).

Ok, so you're telling me that even though I included Citibank in my bankruptcy they will give me credit again 2 yrs out of discharge??

[CindyLou]

It is possible. My husband included Cap. one and got a Cap one less than one year out. As far the others (again with the exection of american express) it all depends on different factors including how well they cross reference their data bases.. You can pretty well write off Amex though...lol.

[HelpThisGirl]

My friend told me she had Target in a BK 11 years ago and they still won't open an account for her due to BK. She got a letter the other day. She is the only one who knows what I'm doing and I wanted to know about that as well.
Some do, and some don't I guess?
Is Chapter 7 viewed differently from Chapter 13?

[lostinmich]

It is possible. My husband included Cap. one and got a Cap one less than one year out. As far the others (again with the exection of american express) it all depends on different factors including how well they cross reference their data bases.. You can pretty well write off Amex though...lol.

I'm shocked! I guess I just assumed... wrongly... that a company would never give you credit if you had already stuck them with a balance in a previous bankruptcy.

I stand corrected.

[CATCHMEIFYOUCAN]

Why pay a chunk of money for Bankruptcy and be able to get fully discharged, only to go back to the same creditors and pay them back? You may as well not have filed and negotiated with the creditors instead.

What a waste. Your credit is already ruined, the Bk stays on your report for years (8-10), paying back your debt won't clear that Bk off your report. I would just be patient and go through the motions and slowly rebuild your credit back up.

Just my 2 cents.

Catchmeifyoucan