Bankruptcy can prove to be a long and intense process. When your bankruptcy has concluded, you will hopefully feel the relief of having your financial affairs in order and being permitted to start anew. If your bankruptcy goes smoothly, you may achieve discharged debt status. When a debt is discharged, you are released of your obligation to pay it—however, the mark of “discharged” will appear on your credit report and is recorded in your bankruptcy file. Discharged debts are typically assigned towards the end of bankruptcy proceedings.
If you’re hoping to remove the “discharged” status from your credit report or simply find yourself able to make an honest repayment on a debt you feel that you owe, you may wonder if it is possible to repay a debt after it has been discharged. Consider the following if you wish to pay a discharged debt:
Legal Allowance
You are permitted to repay a debt after it has been discharged. Some debtors wish to repay debts if they involve money loaned from friends or family members or if the money owed goes to a presently-used, necessary business, such as a doctor’s office. Any move on your part to repay the debt is entirely voluntary once the debt has been discharged. Before repaying discharged debt, consult with your Minneapolis bankruptcy law expert.
Other Financial Obligations
Depending on your bankruptcy type and your individual situation, you may still be required to pay on certain debts while others are discharged. You are legally obligated to make these repayments and cannot ignore them. Other items such as current utilities, rent, living expenses, certain legal claims, alimony and child support must be paid. You cannot skimp on these payments to repay debts to which you are no longer obligated to pay.
Reasons for Repayment
Assess your reasons for wanting to repay discharged debt. If your former creditors are still harassing you, they are in violation of bankruptcy law. You should notify your Minneapolis bankruptcy attorney immediately to take action. If your employer fires (or threatens to fire) you based upon your bankruptcy or debt discharge status, they are also violating the law. You should provide an account of any such events to your Minneapolis bankruptcy lawyer.
If you do choose to repay a discharged debt after consulting with your lawyer, keep current with your credit report to ensure that the “discharged” status is waived after 90 days of repayment. If it is not, you may notify the credit agencies that the discharged debt has been repaid in full. Be ready to provide receipts as proof of payment if necessary.