Can a Creditor Force Me to Reaffirm Debt After a Bankruptcy Discharge?

Are there situations in which you can be required to repay debts you owe even after you receive a bankruptcy discharge? Can a creditor continue trying to collect on debts you owe after your bankruptcy case has been completed or, worse, force you to reaffirm your debts? There are relatively few types of debts that a debtor will still owe following a bankruptcy discharge, and some of those debts may be reaffirmed debts based on the particular situation of the party filing for bankruptcy. However, U.S. bankruptcy law does not permit debtors to continue taking legal actions in attempts to collect on debts that have been discharged in a bankruptcy case. Our Oak Park bankruptcy lawyers can tell you more about reaffirmed debt and how debt responsibilities can persist after a bankruptcy discharge.

Reaffirming Debt is a Process That Will Occur Prior to a Bankruptcy Discharge

One of the first things to know is that, if any debt is going to be reaffirmed such that a debtor still owes it following a bankruptcy discharge, that reaffirmation will take place before the bankruptcy is finalized. Reaffirming debt means that the debtor recognizes that a particular debt would be dischargeable, but for one reason or another wants to reaffirm the debt so that the debt is not discharged. Sometimes debtors reaffirm cosigned debt, while in other situations a debtor might reaffirm secured debt in order to retain the associated property. Reaffirmation will take place through a reaffirmation agreement, which will be provided to the bankruptcy court before a discharge. To be clear, debtors who file for bankruptcy will not enter into a reaffirmation agreement with a creditor once a debt has been discharged.

Non-Dischargeable Debts are Not Reaffirmed, but You Will Still Owe Them After Your Bankruptcy Case

Next, you should know that there is a difference between debts that are not dischargeable and debts that are reaffirmed. Debts that are reaffirmed are those that would otherwise be eligible for discharge in your bankruptcy case, but you enter into an agreement with the creditor to remain responsible for those debts despite obtaining a bankruptcy discharge for other eligible debt. Non-dischargeable debt is not eligible for discharge, so the debtor still owes that amount after a bankruptcy case is finalized. Non-dischargeable debts need not—and will not—be reaffirmed as part of a bankruptcy case since they cannot be discharged anyway. Examples include debts owed for spousal or child support, as well as certain kinds of tax debt.

Reaffirmed Debt is Different from Revived Debt

Finally, we want to make clear that reaffirmed debt is different from what you might have heard described as “revived” debt. Once the statute of limitations has run out on debt collection, creditors and debt collectors are not lawfully permitted to take legal action against you to collect a debt unless you “revive” the debt in some capacity—by making a payment, agreeing to a payment plan, etc.

This type of debt is distinct from reaffirmed debt, as well as from discharged debt. Once you have a debt discharged in a bankruptcy case, while you are still permitted to pay it off, you are not legally bound to repay that debt in any capacity and creditors or debt collectors cannot take any legal action against you.

Contact an Oak Park Bankruptcy Attorney Today

Do you have questions about discharged debt, reaffirmed debt, or revived debt? Our Oak Park bankruptcy attorneys can answer your questions today. Contact the Emerson Law Firm to learn more about how we can help.



See Related Blog Posts:

How COVID Has Changed Consumer Bankruptcy

Will My Debt Relief Be Taxed?

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