Filed Ch7 last week. Question: When you know a creditor personally, how to tell them?

[SensibleShoes]

Thanks to all who post here; this site has helped me so much. I met with my atty on Sept 3 and he said he would file my BK that evening. I plan to give a heads-up to two creditors (doctor and landlord) before they get the BK letter -- I know them personally and want them to hear about it from me first. I am so sorry to have had to include them in the BK, but I understood that I could not leave them out. Atty says I am free to pay any creditor even if the debt has been discharged in BK, and I do want to pay these two creditors as best I can. Has anyone had the experience of breaking the news to a creditor they know personally? How did you handle it? Is it ok to tell them that I do intend to pay them even though they are included in the BK? Is it ok to go ahead and make payment arrangements with them? Or do I have to wait until after the discharge? Would this be viewed as preferential treatment of a creditor? (My other debt is all credit cards and bank loans. I also have a car loan that I am reaffirming and student loans that of course can't be discharged). Thanks for any and all advice!

[keepmine]

Wait until after discharge to make any payment arrangements.

[justbroke]

Has anyone had the experience of breaking the news to a creditor they know personally? How did you handle it?

I called my landlord (at the time) to inform him that I was vacating the place within 2 weeks and that I had filed bankruptcy and would not be assuming the lease. He thanked me for letting him know and told me that I needed to do what I needed to do. As for your landlord, are you intending to stay where you are? Then paying the landlord to keep your payments current, is not any preference at all. It's required living expense.

Is it ok to tell them that I do intend to pay them even though they are included in the BK? Is it ok to go ahead and make payment arrangements with them?

Now this part, you need to be careful of. Nothing stops you from paying them back after the discharge. If you want to tell them that they need to wait until after the discharge before you can begin to pay them back, that should be fine. However, know that their debt would have been discharged and you do not have to pay it.

Or do I have to wait until after the discharge? Would this be viewed as preferential treatment of a creditor?

You need to wait until after the discharge.

[SensibleShoes]

Thanks for your response! I am moving out of my current apartment into something more affordable. I do owe back rent to the landlord, who has been very patient and nice about letting me pay late. Recently we both agreed that I should move out because I am just getting further into the hole each month. But the landlord does expect to be paid for the back rent even though I am moving out, and will be surprised to get the BK letter. That is why I would like to tell them before the letter arrives. Sounds like the best approach is to let them know the situation and that I would like to pay them back regardless of the BK, but that I need to wait until after the discharge to do so.

[debtprison]

Thanks for your response! I am moving out of my current apartment into something more affordable. I do owe back rent to the landlord, who has been very patient and nice about letting me pay late. Recently we both agreed that I should move out because I am just getting further into the hole each month. But the landlord does expect to be paid for the back rent even though I am moving out, and will be surprised to get the BK letter. That is why I would like to tell them before the letter arrives. Sounds like the best approach is to let them know the situation and that I would like to pay them back regardless of the BK, but that I need to wait until after the discharge to do so.

I would make sure to wait until after tha BK has been filed for sure and that the automatic stay is in place before telling the landlord. Just to protect yourself.

If you show that you are going to move out ASAP and clean up the place he'll probably be relieved. I'd also mention that he isn't the reason for the BK. He might be paranoid that you are filing Bk mainly to stay at his place for months with free rent (Even though he can easily fight that with effort). He may not have any experience with BK and thus have many fears and misconceptions.