Q: Filed Chapter 7 bankruptcy. Owe $140 on a title loan. Want to pay this off, how can I do this. Manager would not let me.
Called to get payoff, was told account was flagged for BK and that manager has to call corporate to find out if she can take my money. I have the $140 and just want to pay it off.
The "curtain" drops regarding debts and assets on the day a Ch.7 case is filed, for purposes of determining what assets are included in the bankruptcy "estate", as well as what debts will be subject to discharge.
Any duly perfected lien will not be discharged, or otherwise affected by the bankruptcy.
More particularly, in response to your question, any earnings or income you enjoy after the bankruptcy filing date is NOT includable in the bankruptcy estate, and is in the unfettered control of the debtor. For that reason, if the debtor chooses to do so, he can pay anyone, for any reason, even if that is an otherwise dischargeable debt included in the bankruptcy.
A bankruptcy discharge, it is often said, removes the legal obligation to pay a debt, but not the "moral" obligation.
Your creditor is probably concerned about appearing to violate the automatic stay, which would prohibit any creditor from attempting to collect a dischargeable debt. If the creditor has done nothing to encourage or persuade you to pay the debt, it should have nothing to fear.
You need not wait for the creditor's permission to pay the debt. Simply send them a check, identifying the account number and lien in a cover letter with the check, that directs the creditor to apply the payment to that lien and account. Send it certified mail, so that you can prove the creditor's receipt of the check. Very few creditors are sufficiently awake to refrain from processing a payment by depositing the check.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.