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The card holder is under no legal obligation for the card holder to continue making payments after filing for bankruptcy, unless the case is dismissed without a discharge. There are some who believe that they can improve their credit rating by pay off debts that were discharged in a bankruptcy, but I believe there are better methods to reestablish credit after bankruptcy.

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Q: If an account is closed by a credit grantor why would the card holder continue to make payments after bankruptcy findings are closed?
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Related questions

Can you close your credit card account and continue to make payments?

No, what usaully takes place is that the credit card company freeze your credit card account and you continue to make payments


How do you get a creditor to withdraw late payment reports that occured after you filed BK if the creditor claims they can continue to report this?

If the account with the late payments was discharged in the bankruptcy, that account needs to have all information removed except for the "discharged in bankruptcy" (or similar) statement. Once the account is discharged, continuing to show late payments is like hitting the consumer twice. Send the original creditor copies of the pertinent pages from your bankruptcy papers, copies of your id, ss card and a letter requesting that they change the way the account is being reported to the bureaus. Concurrently, write the bureaus and request the same changes. If you are not successful, you may have to file suit to have the information shown accurately.


If a loan is set up through an automated clearing house payments is a bank obligated to stop these payments upon notice of bankruptcy?

Under the ACH rules which govern automated clearing house transactions there is no requirement to discontinue recurring transactions upon bankruptcy. In order to stop the recurring ACH payments, simply send a written notice to the organization that is debiting your account which states that you are revoking your authorization for them to debit your account. If they continue to debit your account, you can contact your bank and fill out a WSUPP (Written Statement Under Penalty of Perjury) form and your bank will reject any future payments from being debited from your account and refund to you any debits which ocurred after you revoked authorization to the organization debiting your account. For more information: http://www.ach-consulting.com and http://www.achdirect.com


If an account was included in a Ch 7 bankruptcy can the account's history of late payments still be listed on the credit report?

Yes, your payment history will still be a part of your credit report as well as the Chapter 7.


Can you open a checking account before bankruptcy?

After declaring bankruptcy it is smart to wait six months before obtaining a new account. If a trustee finds that you have XXXX amount of dollars in bank B after closing an account at bank A it will look as if you tried to defraud the bankruptcy law. For chapter 7 wait until discharge for chapter 13 as long as you are making timely payments it doesn't matter.


If you declared bankruptcy can a creditor continue to mark your report as a charge off even after the date of your bankruptcy?

The account will or should be changed to read "included in bankruptcy". It will still however remain on the report until the seven year time limit expires. However, the account is charged off for the amount that wasn't collected and reporting that would be proper too. (Charge off is how the creditor reflects that you didn't pay and he had a loss on the account...that it was by bankruptcy makes no difference...actually worse).


Can a credit card continue to allow automatic charges on your account after you ask to have the account closed?

Not if you ask them to close it in writing and you have NO balance.


If your mortgage payments are being taken automatically out of your bank account and then the bank goes out of business will the payments continue?

You will need to be more clear on what you mean by out of business. In most cases today all of your assets are protected by FDIC and the bank will be seized. In this case, normal operations will continue for the bank. It will be a good idea to verify that the payments are coming out ok.


Should an account discharged in bankruptcy have a status of closed and if it still says open is this hurting you?

In this instance the account would generally be noted as "included in bankruptcy. The impact the open account would have is insignificant, compared to the bankruptcy.


What does adverse accounts mean?

An Adverse account means a delinquent account. An account that has not received on time monthly payments, or payments at all.


Are used to take money directly from your account.?

A standing order or a direct debit allows money to be taken out of your account, as the account holder has authorised the transaction. A transaction that will continue until the account holder states otherwise and cancels any future automatic withdrawal payments.


Can you keep an account and not list it in a bankruptcy?

Yes.