I have just received notice that the bk court received my last payment and they are now in the process of discharging which takes 60-90 days. We are also selling our house and the title company claims we need to have the discharge paperwork. The court sent us a statement regarding the case was fully repayed and they are working on the discharge. Can the title company hold up this sale? We are in Texas.

Also, can credit card companies sell your debt that was included in the chapter 13 to collection agencies?

firemom31

I can't answer the first part of your question, but I can tell you with confidence that debts included in the Ch 13 are wiped clean once you pay off the 13. They can not come after you to collect. You need to keep a vigilant eye on your credit reports and make sure they are correct. There are many unscrupulous debt collection agencies out there who will try to intimidate you into paying a debt you no longer owe. Do not talk to them on the phone. Send them a letter notifying them that the debt was satisfied as part of bk case # (insert your case #). Make sure you send it certified mail with a returned receipt and keep every piece of paper as documentation. That should stop them in their tracks, if not, you have grounds to sue them under the Fair Debt Collections Practice Act. Congrats on paying off your 13 and good luck to you.

Fr_Chuck

If the house would sale prior to the discharge, any money you recieved could be claimed by debots from the bankruptcy, even if you get it right after, a debtor may try to claim fraud, that you were slowing the sale down so you did not have to pay any of that money to pay off your debts.