It's always interesting to hear how some opponents to bankruptcy claim that bankruptcy debtors are irresponsible and trying to avoid their debts when so many debtors actually want to repay their debts even after bankruptcy, despite doing so being a huge mistake. Many debtors mistakenly feel guilty about filing bankruptcy and in their attempts to amend for their perceived wrongs they may decide to repay forgiven debts after bankruptcy. Below are a few reasons why repaying discharged debts after bankruptcy is a huge mistake:
- The number one reason why repaying forgiven debts after bankruptcy is a mistake is that you won't get much if any benefit from doing so. While the creditor in question will be more than willing to take any payment you choose to give them after bankruptcy, repaying the debt is not going to make the bankruptcy filing go away. The bankruptcy filing will remain on your credit report for 10 years after the filing.
- Creditors who receive payment from debtors after bankruptcy are not going to remove the bankruptcy from their reporting to credit bureaus. The account is still going to say "included in bankruptcy" or "discharged in bankruptcy" a matter of fact they may not even give the debtor the benefit of noting on the credit report that the account was paid.
- The money you spend repaying forgiven debts after bankruptcy could be used to help you reestablish credit after bankruptcy. Remember, your road to financial recovery may begin with bankruptcy but it does not end there. You will need to reestablish your credit and savings so that you can avoid another bankruptcy filing in the future.