Still an unanswered questiion to earlier posting

[skyline1222]

Question is still not answered so that I understand it
This is a follow up to my previous post. By the way thank you one and all for responding...

I am going to take the advice of some of you that posted and just let my bk get tossed out in a few months and then negotiate to pay my creditors whatever prices we agree upon. HOWEVER one thing is not clear to me

I emailed my attorney and this is what I asked him

Since my creditors turned my accounts over to their attorneys to represent them in my bk case...Am I responsible to pay any of the costs that their attorneys charge them to represent them for acting on my creditors' behalf?

In other words say I owe Credit Card company A $5,000. My bk gets tossed out. Do I now owe my creditor $5000 or $5000 plus any fees or charges their attorneys charged them? My lawyer wrote back and said
"Yes you do...But since you will be settling with your creditors for a discount..it doesn't really apply". Not sure what he means.

My accounts were initially turned over to collection agencies and the attorneys didn't enter the picture until AFTER I filed my bk. Again..once this bk is tossed out will I have my creditors' attorneys chasing me down for additional monies? I don't want to settle with Credit Card company A only to find out that their attorneys are now after me. ALL my debt is on credit cards.

I was always under the impression that once the bk got tossed the account reverted back to my original creditors and when I settled with them for a specific amount that would be the last I heard from them or their attorneys on this matter. Right or wrong

ANY input would be appreciated

Thank you
skyline1222

[Flamingo]

Once you lost the protection of the bankruptcy I am assuming was dismissed, yes you are back to where you started as to your creditors. Your answer lies in the contract you signed when you obtained your credit. Pull out those little brochures, application attachments, etc. for your credit cards and review the clauses stated therein as to nonpayment of balances, collections, etc.. You are now back to dealing with all that is stated in those contracts as to collections on unpaid balances.

[newbie2]

In other words say I owe Credit Card company A $5,000. My bk gets tossed out. Do I now owe my creditor $5000 or $5000 plus any fees or charges their attorneys charged them? My lawyer wrote back and said
"Yes you do...But since you will be settling with your creditors for a discount..it doesn't really apply". Not sure what he means.


skyline1222

Example of what your attorney means: You owed Credit Card company A $5000 when you filed for BK. You may now owe A $5500 that includes added interest (from the date of filing) and A's attorney fees.

If you call them and offer $2500 total as a settlement and they accept it, then you're not paying the attorney fees, Company A will be paying any attorney they hired out from the $2500 that you give them. (Get that in writing)

Make darn sure that you get a nice paper trail in writing that after the settlement is paid that you will not owe anything else and that they can't re-sell the balance to another company for collection.

My next 2 cents: If you have many credit card companys to settle with, you may want to seriously re-think having your BK dismissed and let the trustee know about your inheritance. The trustees fee for handling it will still be far less than the added interest, late fees, attorney fees (if applicable) and the pure hassle of dealing with each company.