What to do about a charged off loan that went through bankruptcy?
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What to do about a charged off loan that went through bankruptcy?
About 6 months ago I went through bankruptcy. I had a pool loan that was charged off. At the time of discharge, the bank said they were going to repo my pool if I did not pay them. As of right now, I owe $1,400 on the charged off loan. I want to quit paying as the pool is 4 years old and probably not worth what I owe. What are the ramifications if I quit paying or should I seek some sort of settlement on the charged off account?
Asked on May 24, 2012 under Bankruptcy Law, Ohio
Answers:
MD, Member, California Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
If you included the pool loan in the bankruptcy as a loan and the debt was extinguished through the bankruptcy, the pool company can simply come and take the pool (assuming this an above ground pool). If not, then there really may be no recourse for the pool company but it would be up to the pool company to attempt to collect on the loan some other way (probably not going to happen). If you wish to reaffirm the debt, then you would need the pool company willing to allow you to reaffirm the debt and the bankruptcy court would have to approve.
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