Can I pay a debt after filing for bankruptcy? Ask your bankruptcy attorney

In the past, filing for bankruptcy often carried the stigma of failure. Many people thought that if someone filed for bankruptcy, they were lazy for not paying their bills. Because of this, most people did everything in their power to hide the facts of their bankruptcy filing from the world. In the last four years it has lost much of the stigma. I don’t know if it’s just that moral values ​​are declining or it could be that so many Americans are filing for bankruptcy these days that it’s become commonplace.

For noble Americans who do everything in their power to avoid filing for bankruptcy because they don’t want to pay their debts, they can pay someone back after bankruptcy discharge if they feel guided. Personally, I don’t think it’s necessary unless it’s a friend or family member. In this case, just sit down and talk to this person and let them know that they will not be included in the bankruptcy and will be reimbursed when possible. For everyone else, as long as filing for bankruptcy was unintentional, this is what it was created for. Filing for bankruptcy was giving good, honest, hard-working Americans a second chance and a fresh start. If you have to pay off your debts after the side settlement bankruptcy, it will be quite difficult for you to get back on your feet financially while tied to debt.

Another section of debt that will survive bankruptcy is secured debt. Most lenders that have secured debt will ask the debtor to sign a reaffirmation agreement during bankruptcy. This agreement will be filed with the bankruptcy petition in the bankruptcy court. What a reaffirmation agreement does is reiterate the debt and the terms of the contract. Although the debt is secured by the property, the agreement provides that the debt will survive the bankruptcy filing and be paid on an ongoing basis. If the person filing for bankruptcy defaults on the loan, the property will be seized at the debtor’s expense. Many times, the bankruptcy attorney will tell his client that now is the time to get rid of a toppling car or house. If the secured property is included in the Chapter 7 bankruptcy, all deficiencies, legal costs, and property damage will be removed in the bankruptcy discharge. If that same debt is reaffirmed and the person loses it a year later, the creditor can come back and sue the individual for legal fees, the deficiency, and/or damages. The person will have no other way out than to pay it. The creditor will be able to obtain a judgment and force a wage garnishment on the individual. This is devastating for an individual post Chapter 7 bankruptcy.

Before filing for bankruptcy, it is very important that a person be honest with their bankruptcy attorney and do their best to look into their crystal ball and run through all possible scenarios, even the worst. A car or house can be replaced later, but the damage caused by a creditor’s judgment can destroy a person’s financial future.