Do I owe a credit card debt after my discharge?

31 Mar Do I owe a credit card debt after my discharge?

It depends. Did you sign a contractual agreement stating that you would repay? If you did AND it was filed with the court then yes you owe the debt. What you want to look for is a document called a Reaffirmation and that Reaffirmation MUST be filed with the court to be legally enforceable against you after discharge. Check your paperwork and your attorney if you are not sure.

If you did not file a Redemption AND you received a discharge with regards to that debt you are now and forever will be released from ever paying this debt back. It is critical to keep this in mind. Why you might ask, because nine times out ten when you go to refinance a house the lender will say “Hey, you owe $5,000 to Citifinancial and you have to pay this off to refinance your house.” Many debtors do not take the time to follow up with their attorney to determine whether or not they owe the debt.

Before you pay off any debt in the future that should have been or was part of your bankruptcy check with your attorney first. Also keep in mind if a creditor or a collector is attempting to collect debt that was discharged you might be entitled to damages under the violation of the permanent injunction from the discharge, the Fair Debt Collection Practices Act and/or the Fair Credit Reporting Act. Always, always, always verify that you owe a debt after discharge before you pay decide to pay the creditor!

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Former Bankruptcy Attorney to the Kansas City UAW: Ford and GM workers, now assisting the general public in Missouri and Kansas with regaining financial control using the Bankruptcy Code. 816-472-HELP (4357).

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