Legal Question in Bankruptcy in Louisiana

negotiating with creditors

We filed bankruptcy, then my husband wanted it dismissed. I am on the phone negotiating with creditors to try to pay my credit card bills. None of them has started sending bills yet. Several creditors had trouble finding my account. They said the account had been charged off. One person said I didn't have to pay the account because it had been charged off. Three companies negotiated a lower settlement. about 50% of what we owe. I worked at a collection agency, so I understand what the term charged off was. They claimed it as a loss on their taxes. is this correct? and if so do I still owe the bill? Can they turn me over to a collection agency if I don't pay them?


Asked on 3/14/06, 7:54 pm

1 Answer from Attorneys
Carolyn Patrick Law Office of Carolyn Patrick

Re: negotiating with creditors

It is not clear whether your bankruptcy was actually dismissed or if you received a discharge. This answer will presume that your bankruptcy was dismissed prior to discharge. In that case, you probably still owe all the money to all of your creditors. A "charge-off" is merely an inside accounting notation which removes the account from the creditor's active accounts. THIS DOES NOT MEAN THAT YOU DON'T HAVE TO PAY! You still owe the debt and the creditor has the right to continue pursue collection or turn your account over to a collection agency.

There is a possiblity that the statute of limitations (prescription) may have run on the accounts, depending upon the date of last activity.

If, on the other hand, you actually received a discharge in bankruptcy, you probably do not owe any of the money.

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Answered on 3/15/06, 10:08 am


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