You Can Pay Back Creditors After Bankruptcy...If You Want

            WHAT?!  I am sure this is what you are thinking right now.  Why would I go through a bankruptcy and still pay creditors back afterward?  Well, before you think I am completely crazy, notice that I said "if you want."

           One thing that you must understand about bankruptcy is that if you file bankruptcy you must list each and every one of your creditors......this includes the vehicle you want to keep (listing a creditor does not always mean surrendering the property), your family doctor with whom you have set up a payment arrangement as well as Aunt Connie.  Many of the potential clients I meet with at Halcomb Singler, LLP believe that they can include some of their debts and leave others out to be repaid.  This is unfortunately not the way that bankruptcy works.  Any debt not paid in full at the time of the bankruptcy must be listed on your bankruptcy petition.

           Overall, I do not recommend repaying creditors after a bankruptcy.  However, I do understand there are exceptions when it makes sense to pay back a creditor after bankruptcy even if the debt has been legally discharged.  For example, if you have a wonderful family doctor and you want to continue to take your children to that doctor for the next 10 years you might want to give the doctor a call after the bankruptcy has been filed, let him know how much you want to go to him and see whether he will work out a payment arrangement.  Another example that I see come up quite often is when my clients owe money to a family member.  Many times even though a client is not legally obligated to pay back a relative, they want to do so.  This is completely understandable, and many times a client of mine will work out an arrangement to pay a relative back after the bankruptcy.  It should be noted that this is completely different than paying a relative or creditor back prior to filing bankruptcy, which is typically not a good idea and should be discussed with an attorney.

             The point is that if you are struggling to pay your bills each month, but were waiting to speak with a bankruptcy attorney because of one creditor that you want to pay, there is really no need to wait.  The reality is that the bankruptcy court (although I believe all involved want debtors to succeed post-bankruptcy) does not care whether you pay back discharged debts after filing bankruptcy.  If you would like to meet to discuss bankruptcy (even if you are not sure that you want to file bankruptcy) feel free to call my office at (317) 575-8222 or to click here to complete our form and we will contact you for an appointment.

Halcomb Singler, LLP, is a debt relief agency.  It helps people file for bankruptcy under the bankruptcy code.  No attorney-client relationship with the firm of Halcomb Singler, LLP, is created through this blog. Also, please note that Erika Singler is an attorney licensed in Indiana and does not seek to practice law in any jurisdiction in which they are not properly authorized to do so.  The information contained in this blog is general in nature and should not be relied upon for the circumstances of any individual(s) or businesses.