topic Re: Will Paying Off a Past Bankruptcy Help? (2003) in General Credit Topics

Will Paying Off a Past Bankruptcy Help? (2003)

TessiBon — Sun, 06 May 2007 15:47:06 GMT

Re: Will Paying Off a Past Bankruptcy Help? (2003)

Anonymous — Sun, 06 May 2007 15:54:06 GMT

Not sure of the question. Do you mean paying off an old debt that was IIB? If so it should not be showing a balance due and if it is dispute that. Do you mean paying offa ch13 payment plan that was defaulted on? If thats the case once you default on a Chapter 13 your bankruptcy protection is removed.

Message Edited by Brammy on 05-06-2007 11:54 AM

Re: Will Paying Off a Past Bankruptcy Help? (2003)

Anonymous — Sun, 06 May 2007 16:04:36 GMT

I wouldn't do it unless I understood exactly how much it would improve things and exactly what I wanted to do and could achieve through the improvement. I believe that making a partial payment on a debt may void your discharge with respect to that debt. If you plan to make a full payment, you are proposing to exchange a sum of money, which has a specific, known value, for an "improvement" whose value is much less certain. The question you should be able to answer is not, will my credit score go up, and how much? The questions you need to be able to answer are: 1. Will paying X sum to my discharged creditors enable me to get the credit I WANT, which I NEED to do this thing that I WANT to do? 2. Is it impossible to do this thing in alternative ways that are less costly than the combined cost of paying my discharged creditors and assuming the burdens associated with the debt? 3. Are there alternative, lest costly ways of achieving my general goals than doing this thing? Address those questions first, because those, I think, are the key questions. Raising your credit score is not a goal that has value in and of itself. It is a means to get loans. Being able to get a particular loan is not a goal that has value in and of itself. It is a means to buy things now rather than in the future. Even buying a particular item at a particular time is not the ultimate goal. The ultimate goal is maximizing your satisfaction with your life. Will paying your discharged creditors lead to a chain of circumstances that will result in an improved satisfaction with your life, compared to other actions you can take?

Re: Will Paying Off a Past Bankruptcy Help? (2003)

Anonymous — Sun, 06 May 2007 16:08:37 GMT

MikeToreno wrote:
I wouldn't do it unless I understood exactly how much it would improve things and exactly what I wanted to do and could achieve through the improvement. I believe that making a partial payment on a debt may void your discharge with respect to that debt. If you plan to make a full payment, you are proposing to exchange a sum of money, which has a specific, known value, for an "improvement" whose value is much less certain. The question you should be able to answer is not, will my credit score go up, and how much? The questions you need to be able to answer are: 1. Will paying X sum to my discharged creditors enable me to get the credit I WANT, which I NEED to do this thing that I WANT to do? 2. Is it impossible to do this thing in alternative ways that are less costly than the combined cost of paying my discharged creditors and assuming the burdens associated with the debt? 3. Are there alternative, lest costly ways of achieving my general goals than doing this thing? Address those questions first, because those, I think, are the key questions. Raising your credit score is not a goal that has value in and of itself. It is a means to get loans. Being able to get a particular loan is not a goal that has value in and of itself. It is a means to buy things now rather than in the future. Even buying a particular item at a particular time is not the ultimate goal. The ultimate goal is maximizing your satisfaction with your life. Will paying your discharged creditors lead to a chain of circumstances that will result in an improved satisfaction with your life, compared to other actions you can take?

If the OP is talking about paying off an old debt included in a discharged bk, they have no obligation to do so and the fact that the debt is still being collected on is illegal. Further the balanced owed should show 0 on the credit report itself since the bankruptcy discharged any obligation to pay it.

Re: Will Paying Off a Past Bankruptcy Help? (2003)

Anonymous — Sun, 06 May 2007 17:32:33 GMT

Definitely NO. That's water over the dam. Focus on building GOOD credit history. If you have cash laying around, pay off that student loan and any CC balances you have.

Re: Will Paying Off a Past Bankruptcy Help? (2003)

TessiBon — Sun, 06 May 2007 18:28:46 GMT

Thank you all for your replies.....this will help me make a wise decision. Your time is appreciated.

Kind regards,

TessiBon