reporting bills...

[mickeysfriend]

we're hoping to file chapter 7 within the next week or so. My children have attended counseling and we owe about $1200 to the counselors. I REALLY want to be able to pay them...they were absolute angels and I want my girls to be able to return to them if they should need to.
I think I HAVE to report it as a debt, but can I still pay them later? I would like to pay them off before we file, but I dont see that happening.

[justbroke]

If you report the fee due the counselors, it will be discharged (legally void and noncollectable) at the closing of your Chapter 7 case!

If you want to pay them later, [s]then you may have to reaffirm the debt[/s]. But be very certain that you want to do this. Will you be able to afford to pay them later? Or, post bankruptcy discharge, will they sue you in court and get a judgment and then garnish your wages? (Because then, you don't have any protection. You are exposed.)

We don't call it bankruptcy "planning" for nothing. Hopefully the lawyer you select should be able to help you decide on how to proceed. I'm not a lawyer and haven't filed a Chapter 7. I can see the risks though by re-affirming or otherwise not including the debt in the Bankruptcy.

(That's just my opinion, I could be wrong.)

[AngelinaCat]

Hi mickysfriend:

On the back of our Discharge Order (C7) is a list of the types of debts discharged, those not, and so forth is a general guideline of what is or is not discharged.

But also on this sheet is the following sentance: "Also, a debtor may voluntarily pay any debt that has been discharged."

You may want to talk with your counselors' billing department about what kind of arrangements you want to make.

You might also want to run this by your attorney. I very much understand wanting to pay them. I had excellent results with an Orthopedic Group in my area after I broke my arm and knee last year, and though their debt has been discharged--its around 500.00--I want to pay it as soon as I can.

Good luck to you.

[BKParalegal]

Justbroke, lighten up on the re-affirming statements. Don't ever suggest to someone to re-affirm an unsecured debt, that is ludicrous. All BK does is to discharge the collectability (is that a word) of a debt, but everyone still has the right to pay the debt,at their own choosing, after the bk, but absolutely not through re-affirming the debt.

[magyar123]

Wouldn't this counseling be considered aducational expense? And not dumped into the debts bucket?

[BKParalegal]

Huh????

[justbroke]

Justbroke, lighten up on the re-affirming statements. Don't ever suggest to someone to re-affirm an unsecured debt, that is ludicrous. All BK does is to discharge the collectability (is that a word) of a debt, but everyone still has the right to pay the debt,at their own choosing, after the bk, but absolutely not through re-affirming the debt.

Please notice that I didn't even encourage them to do so. Quite opposite, I told them to consult a lawyer and be very careful about re-affirming anything!

I do understand why you would caution someone not to do it, and hence, I was making sure the poster understood what they were doing.

Fair?

[BKParalegal]

Fair, but again, the words reaffirm and unsecured should never meet in the same sentence.

[justbroke]

VEry true... didn't really think of it that way. One should only use the "R" word when taling about secured debt on something you want to keep. I'm going to PM you to task you a question, so as not to get this thread off-track.

[lrprn]

If you report the fee due the counselors, it will be discharged (legally void and noncollectable) at the closing of your Chapter 7 case!

This is true.

If you want to pay them later, then you may have to reaffirm the debt.

This advice is 100% WRONG. No competent lawyer or judge will allow you to reaffirm non-secured debt such as medical bills.

However, after discharge you can pay back anyone you want to. Talk with the counselors and ask if they will be willing to continue to see your daughters after you file if that proves necessary. If they say yes, then your problem is solved.

However, if they say no, then if you can afford it ask if they would be willing to continue to see your daughters if you pay them back after your bk is closed - they will almost certainly say yes. But keep in mind that you have no legal obligation to do so.

[mickeysfriend]

Thanks everyone!