Post Number: 1243
|Posted on Tuesday, August 05, 2003 - 06:48 pm: ||
American Bankruptcy Institute Law Review
Volume 10 Number 2 Winter 2002
THE RISKS OF PURCHASING AND COLLECTING CONSUMER DEBT
"While the discharge operates to bar threatening debt collection activity, it remains important to understand what it does not do. First, it does not address the continuing validity of the discharged debt and thus does not "absolve the underlying debt retroactively" 13 or extinguish the debt. Second, it does not generally affect a lien on the debtor's property if that lien has not been successfully challenged or avoided during the case, although any deficiency claim would be adversely affected. 14 Third, because the discharge is personal to the debtor and the debt is not cancelled, it does not affect the liability of third parties to the holder of the claim. 15 Fourth, it does not preclude the debtor, under statutorily limited circumstances, from reaffirming, and being obligated for, a debt that is otherwise dischargeable as a result of the chapter 7 case. 16 Fifth, it does not prevent a debtor from voluntarily repaying any debt, which is otherwise dischargeable. 17 Finally, it does not prohibit an unpaid creditor from selling the discharged debt, presumably at a steep discount, to a third party. 18"
Obviously, the discharge will have to be DISCLOSED to the buyer, and I have NO idea whay anyone would take on a discharged debt even if it was free.