QUESTION
After Chapter 7 dismissal, do I need to fax statement to my creditors stating I wish to reaffirm the debt?
Asked on Dec 17th, 2013 on Bankruptcy - Nebraska
More details to this question:
I was recently told my bankruptcy case has been dismissed. I tried calling 2 of my creditors to make payments, and was told by both creditors that I would have to fax in a statement stating I wish to reaffirm the debt in order to pay it, otherwise they will not come after me for the debts. Is this true? I filed a chapter 7 no asset case.
8 ANSWERS
William Rhymer
If your case was dismissed- that means your case was not completed and your creditors can restart the collection process. If your case was discharged- then it is too late to file a reaffirmation agreement. You may just want to try to work out something if you want to keep the property. (Vehicle, furniture, etc.)
Answered on Dec 23rd, 2013 at 9:57 AM
Richard hirsh
I assume you are stating that your case was "discharged" rather than dismissed. Once you are discharged you cannot reaffirm a debt. Most banks will accept mortgage payments on a loan that has not been reaffirmed and many will accept car loan payments that have not been reaffirmed. Besides those and other secured debt I see no good reason to make any payments on discharged debts. In order to go back and reaffirm debts which have been discharged you would have to open up your bankruptcy case and get permission of the court .
Answered on Dec 23rd, 2013 at 9:57 AM
Typically, reaffirmation agreements are only necessary for car or home loans. You do not enter into reaffirmation agreements for credit card or hospital debts. You can not enter into a reaffirmation agreement once the case is closed, there are very specific timeframes to enter the reaffirmation agreements during the bankruptcy. All debts not reaffirmed are wiped out and that creditor can never actively collect that debt again. Most creditors will voluntarily accept payments if you decide that you would like to pay some of them back.
Answered on Dec 20th, 2013 at 5:36 PM
If your bankruptcy case was dismissed, it no longer exists so there is no need to reaffirm. If your bankruptcy case was discharged, it is too late to reaffirm. Bankruptcy law requires that any reaffirmation be filed with the court before a discharge is entered. A dismissal is the opposite of a discharge, and if you are mixing up these terms, you need to be more careful in describing your circumstances.
Answered on Dec 20th, 2013 at 5:35 PM
Bankruptcy Attorney serving Walnut Creek, CA
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Alan E. Ramos Law Offices
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If you case was dismissed, there is nothing to reaffirm - it is as if the bankruptcy was never filed; your personal obligations remain unchanged. If you received a discharge in bankruptcy, you must obtain court approval to reaffirm a debt. However, even in the situation in which you did receive a discharge, there is no legal barrier for you to pay any debt and creditors should have no problem accepting payment. The only issue for creditors is that they cannot take any action to collect a debt.
Answered on Dec 20th, 2013 at 5:35 PM
2 Awards
There is a difference between dismissal and discharge. If you received a discharge it is too late to reaffirm. If your case was dismissed then you can negotiate payment to your creditors. Just provide them with a copy of the dismissal order.
Answered on Dec 18th, 2013 at 11:43 AM
Deborah F. Bowinski
Do you mean the case was discharged? If the case was dismissed then you remain obligated for all your debts. If the case was discharged then you are no longer obligated to repay your dis-chargeable debts. Once a case is discharged it is too late to reaffirm a debt. Generally, it is not a good idea to reaffirm a loan unless there are significant concessions or advantages offered by the lender. For secured debts, like home mortgages and car loans, it is common to be able to just continue making payments on a "voluntary" basis and complete the purchase.
Answered on Dec 18th, 2013 at 11:42 AM
Bankruptcy Attorney serving Omaha, NE
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Heineman Law Office
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If you case was dismissed then your debts are still viable. Only a bankruptcy discharge can eliminate your liability to your debts. You should not need to fax the creditors a statement that you wish to reaffirm a debt. Reaffirming a debt is a process in bankruptcy that is necessary to prevent a debt from being discharged and allow you to remain liable. You did not get a discharge (from what I have read), and so you do not need to reaffirm a debt.
Answered on Dec 18th, 2013 at 9:59 AM