Any monies that are to be paid to a creditor who you have been discharged in bankruptcy and no longer are obligated to pay that debt, that money would still go to them. Bankruptcy remove your obligation to pay a debt, it does not destroy the actual debt, only your legal obligation to pay. Therefore if a lawsuit or some other third-party financing had come up which was meant to pay off that debt, that money should go to that particular creditor. This is usually handled by the bankruptcy trustee handling your case.
I have responded to your inquiry according to the laws of Massachusetts, where my firm is located. Laws can vary significantly from state to state and cases tend to be rather fact-specific, so you are best served by consulting with a knowledgeable attorney in weighing your options.
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Joseph F. Botelho, Esq. BOTELHO LAW GROUP Attorneys At Law http://fallriverbankruptcyattorney.com/ 901 Eastern Ave. Unit 2 Fall River, MA 02723 Office: 888-269-0688 FAX: 877-475-8147
Answered on Apr 30th, 2014 at 2:40 PM