Why Lenders Will Make It More Difficult to Pay Them While You’re in Bankruptcy

Sometimes, a person who files Las Vegas bankruptcy will want to keep paying bills to certain creditors. It’s not necessarily advisable, but if debtors want to do it, ultimately it’s their choice.

However, there are some occasions when debtors will find it downright difficult to pay their bills. For example a debtor will log on to a bank’s Web site and find that it is impossible to make payments over the Internet. Automatic withdrawal plans also cease functioning. Why is this?

In all likelihood, it’s the bank doing something right: diligently adhering to the automatic stay. The automatic stay is a mandate in the bankruptcy code that bars creditors from attempting to collect on any debts. It’s a powerful tool, and bankruptcy attorneys are happy to sue creditors for stay violations. In this case, though, the bank doesn’t want to run afoul of the law, even to the point of looking like it’s trying to collect on a debt.

For those who wish to pay down a debt nonetheless, there are a few options.

(1) Simply send the bank a check or money order. Personal checks are becoming rarer these days, but banks will still accept them.

(2) If you don’t want to be discharged in bankruptcy, you can always negotiate a reaffirmation agreement with the court. A reaffirmation agreement requires the signature of the debtor and the creditor, and the debtor’s bankruptcy lawyer to ensure that the debtor understands the terms of the agreement, including its impact on the debtor’s income. In some instances the bankruptcy judge will sign the agreement.

(3) Keep paying down the debt after bankruptcy. Even if the debt is discharged, that doesn’t mean debtors can’t still pay them if they want to. Debtors mostly choose this option when the creditor is a family member or close friend.

The automatic stay is usually something that bankruptcy debtors want on their side, and they shouldn’t work around it unless they have to.

For more questions about bankruptcy in Las Vegas, please feel free to contact an experienced Freedom Law Firm Las Vegas bankruptcy attorney for a free initial consultation. Call us at 702-903-1459 to set up your free consultation.