Q: I and my ex went through a chapter 7 bankruptcy in 1996. If I pay off a bank card now will I owe everyone else?
When my ex and I filed chapter 7 in 1996 it included a credit card dept from our credit union. They said at the time if we ever wanted to bank there again we'd need to pay off the debt. I and my son want open joint accounts there now, but my landlady says if I repay a debt from the bankruptcy all the other debts will reactivate and I'll owe all of them again. Is this true?
A: That is patently false. You can voluntarily repay any debt that was discharged but that in no way revives or obligates you to pay any previous debt.
A:
No, your landlady is mistaken. Paying off a debt that was discharged in a Chapter 7 bankruptcy will not reactivate the other debts that were also discharged in that bankruptcy.
When you received a discharge in your Chapter 7 bankruptcy in 1996, it permanently eliminated your legal obligation to repay the debts that were included in the bankruptcy, including the credit card debt from your credit union. The discharge is a permanent injunction against collection of those debts.
However, a creditor can choose to do business with you again if you voluntarily repay the debt, which is what your credit union is offering. This is known as a "reaffirmation agreement." By repaying the credit union debt, you are not reaffirming or reactivating any of the other discharged debts.
It's important to note that you are under no legal obligation to repay the credit union debt in order to open a new account with them. It's entirely up to you whether you want to repay that old debt in order to maintain a relationship with that particular credit union.
If you do decide to repay the credit union debt, make sure to get the agreement in writing before making any payments. The agreement should clearly state that you are repaying this specific debt in order to open a new account and that it will not affect the status of your other discharged debts.
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