When Does My Bankruptcy End
If you apply for bankruptcy, it normally ends 3 years and 1 day from when we accept your bankruptcy application.
If a creditor makes you bankrupt, it normally ends 3 years and 1 day after you file a statement of affairs that we accept.
We refer to this as being dischargedfrom bankruptcy.
You don’t need to apply to be discharged from bankruptcy, this is an automatic process.
Was The Debt In Question Dischargeable
First, its important to understand what debts were discharged and which ones werent eligible for discharge when you filed for bankruptcy.
Not all creditors are discharged and there are some debts you might still owe, even if you filed for bankruptcy. A few of the most common types of non-dischargeable debt include court-ordered debts, taxes, and student loans. To learn more about non-dischargeable debts, check out this information from The Balance.
What Gets Discharged In A Bankruptcy
If you feel the crushing weight of credit card debt and a car loan on your shoulders, a bankruptcy might be a viable solution assuming you understand the consequences. But if all of your debts are student loans, think twice before moving forward with bankruptcy.
What is the difference between a discharge and a dismissal?
A discharge means you no longer have to pay the debt. A dismissal means the bankruptcy court dismisses the bankruptcy case. That is the opposite of a discharge! You can ask for a dismissal if you change your mind about going forward with a bankruptcy or the court may decide to dismiss the bankruptcy if it finds you dont qualify for it.
These types of debts are not dischargeable according to U.S. law:
- Tax-related debts
- Debts related to damages or injuries caused when driving while intoxicated
- Some retirement plan loans
- Some condo or cooperative housing fees
If you have any doubt of a specific debt, contact a qualified bankruptcy expert for personal guidance. Its likely not a good idea to declare bankruptcy if your debts cant be discharged.
You May Like: Can Lexington Law Remove Bankruptcy
Property That Can Be Taken Before A Discharge
Bankruptcy is intended to help you get relief from the burden of debt, so removing all of your property would be counterproductive, as you would need to rebuy a car or other items.
Property that is considered necessary for modern life may be exempt from creditors taking it back. But, you may need to petition a judge to stop them.
Some examples of the property a creditor might try to take back include:
- Motor vehicles or a second vehicle
- A second home or vacation home
- Expensive clothing
- A portion of the equity in your home
- A portion of earned but unpaid wages
- Public benefits that have accumulated in a bank account
- Damages awarded for personal injury
- Family heirlooms
While this list looks scary, it is important to remember that creditors can try to take these items, but they generally will not succeed. Much of this property is protected by your state’s exemptions or wildcard exemptions, as it is essential for work or daily life.
A creditor will receive a notice saying your debts have been discharged. They can try reaffirming these items or sue you for debt if they do not agree with the discharge.
Once the discharge of debt is in place, things are considered final. A creditor cannot sue you, try to take your property, or harass you.
What Happen If Litigation Occurs
Two kinds of litigation can delay the closing of your bankruptcy case.
- Determining the dischargeability of a debt. If you or one of your creditors files a lawsuit asking the court to determine if one of your debts is dischargeable or not, the court will keep your case open until it decides the fate of that debt. This kind of lawsuit will not usually interfere with your general discharge unless the trustee or the creditor challenges your right to discharge all your debts.
- Trustee’s litigation to gather assets. Sometimes a trustee will have to file a lawsuit against a third party to get access to your nonexempt property. For instance, if you sold a car for half its value to your cousin a month before you filed your bankruptcy case, the trustee may have a right to the full value of the car. If your cousin refuses to turn over the car or pay the full value, the trustee may have to file a lawsuit. Or, the trustee could file a lawsuit to get back an unusually large payment you made to a favorite creditor before you filed your Chapter 7 case. Your duty to cooperate also applied when the trustee files one of these lawsuits.
Find out more by reading What Is Bankruptcy Litigation?
Also Check: Can You Rent An Apartment After Chapter 7
Your Bankruptcy Case Ends When The Court Closes It With A Final Decree
By Cara O’Neill, Attorney
Don’t feel alonenot knowing when your bankruptcy is over is common. Many people believe it ends after the creditors’ meetingthe appearance all Chapter 7 and 13 filers must attend. Others think it’s done when they receive the dischargethe order wiping out qualifying debts.
But neither is correct. Here’s what you should know:
- The discharge order erases your debt the final decree closes your case.
- After you receive your discharge, your case might stay open for a long time.
- You must work with the bankruptcy trustee overseeing your matter until the case closes.
- The court can reopen a closed case to address problems or mistakes.
You’ll find a more detailed explanation below.
Is There A Record Of Me Being Discharged From Bankruptcy
After that they will be taken off and will no longer appear if you search for them. Then the only record of you having been bankrupt is the London Gazette archives. You cannot get early discharge from Bankruptcy. However the period you are bankrupt might be extendedif you do not co-operate with the Official Receiver.
A similar approach is to file a Chapter 13 case immediately after receiving a Chapter 7 discharge . Again, all you might need is time to pay off nondischargeable debts, such as domestic support arrearagesnot a discharge.
Recommended Reading: Getting An Apartment After Bankruptcy
Avoid Unnecessary Services And Costs
Save your hard-earned money. You may see ads offering to retrieve the bankruptcy discharge notice for you for a fee of up to $30 or more. While paying someone else to do it can save you some time and effort, there’s no need to use a service.
Such services most likely use the PACER system, paying only a few dollars to access the records and charging you many times their cost. Unless you don’t mind the expense, it’s usually better just to do it yourself.
What If I Need My Discharge Date But I Dont Have My Paperwork Anymore
If you had a bankruptcy discharge but you canât find your court order, you can look up your case and case number on PACER. PACER is a government website that has records from bankruptcy courts, district courts, and appellate courts in the United States. The word PACER stands for Public Access to Court Electronic Records. PACER is free if you spend under $30 a quarter. The charge is .10 per page you view. A discharge order is usually only two pages. You can sign up as a non-attorney and then search for your case to view your record. You can search bankruptcy records by your social security number, but only your last four digits are displayed.
If youâre not comfortable with filling out forms online and making queries, you can that handled your bankruptcy. A limited number of courts have voice access to case information, and PACER has a list for you. It would help to have your case number. You can find the number on an old bankruptcy document if you donât want to go online. Some clerks can give the date of discharge over the phone. A paper copy of your discharge could cost a few dollars. A certified copy of your bankruptcy order for discharge will be more expensive.
Recommended Reading: Bankruptcy Software For Consumers
Land Registry/registry Of Deeds
Bankruptcy petitions and orders are registered at the Registry of Deeds against your name and may be recorded against documents of title in the Land Registry. If your petition is dismissed or you are discharged from bankruptcy you can vacate your registration in the Registry of Deeds by completing Form 11 or form 13 of the Registration of Deeds Regulations 1997 and lodging at the Registry of Deeds. There will be a charge of £4.
If notice of the presentation of the petition or the bankruptcy order has been given to the Land Registry the Order of Annulment should include provision permitting cancellation of any entry in the Land Registry or notice of the petition or any bankruptcy inhibition against your title as the registered owner of the land. You should take a copy of the Order to the Land Registry to have the cancellation made.
What If The Trustee Didnt Say Anything Like That
In some cases, the trustee wonât yet know whether theyâll be treating your case as a no-asset case at your creditorsâ meeting. If the trustee asked for more documents or another meeting was scheduled, youâll need to provide the trustee the documents they requested and attend the meeting unless you receive confirmation that the meeting was canceled.
Otherwise, they will still conclude the meeting but they will not be filing a report of no distribution with the court. Instead, theyâll continue working on your case until they know which way to go with it.
If the trustee determines at any point after your 341 meeting that you donât have any unprotected property that they could use to pay your creditors, theyâll file the âno distributionâ report with the court. If your discharge has already been granted when that happens, the only thing left in the case is for the court to close it.
You May Like: How Much Does Credit Score Go Up After Chapter 7 Falls Off
Getting Public Records Changed
After discharge from bankruptcy, your details will still be included in several public records. Some of these will be removed automatically after a certain time, while you’ll need to take action to get others changed, as follows:
- your details will automatically be removed from the Insolvency Register 3 months after your discharge
- if you want your credit record to show you’ve been discharged, you should send confirmation to each of the credit reference agencies and ask them to update your file – remember the bankruptcy will show on your file for 6 years after the bankruptcy order
Whats The Earliest Date I Can Expect My Chapter 7 Discharge
The earliest date you can get your Chapter 7 bankruptcy discharge depends on the date of the Meeting of Creditors , whether there are any objections, and whether a reaffirmation hearing was requested. Bankruptcy laws give time for creditors, bankruptcy trustees, and U.S. trustees to object.
If there are no objections and a reaffirmation hearing is not needed, the earliest date you can get your Chapter 7 discharge is after the deadline for objections expired. The deadline for creditor and trustee objections is 60 days from the first scheduled 341 meeting.
The official date the discharge order will be entered will also depend on the day of the week, holidays, and the courtâs caseload. You could get your discharge the day after the objection deadline expires. Bankruptcy records show discharge filing dates are around four months after filing a bankruptcy petition. If you have a reaffirmation hearing scheduled after the deadline for objections, the earliest you can get your bankruptcy discharge is after the court makes a ruling on the reaffirmation.
Don’t Miss: How Many Bankrupcies Has Trump Had
Two: Use Secured Credit Cards Or Small Loans To Help Build A Record Of On
Secured credit cards. To begin rebuilding your credit, you may wish to obtain a secured credit card. A secured credit card uses money deposited in a bank account as collateral for the credit card. The creditor can take the money in the account only if you default. Some banks offering secured cards do not require a credit check, and it may be easier to obtain a card from them. However, be sure to shop around. Some secured card providers charge excessive fees and interest. You should also make sure the provider reports to all three credit reporting agencies .
It is important to use no more than twenty percent of your available credit on your secured card .
Example: if you have a limit of $500, avoid carrying a balance of more than $100 on the card at any one time.
The purpose of this card is to rebuild your credit, so responsible use is essential. If you are a couple, it is good to have a separate card for each of you.
Quick Note: A secured credit card is not the same thing as a prepaid credit card. Although very convenient, prepaid credit cards do nothing to improve your credit.
Small Lines of Credit and Vehicle Loans. A small unsecured line of credit can be useful in rebuilding your credit. Likewise, if you need a vehicle, a car loan is another way to rebuild credit. However, I do not suggest getting a car loan just to rebuild your credit. See below for information on obtaining a vehicle loan after bankruptcy.
What Happens To Your Creditors When You File Bankruptcy
The OR will inform your creditors of your bankruptcy but this can take a few weeks. If you are contacted by any of your unsecured creditors during this period, just quote your bankruptcy reference number to them that will be the last time you hear from them.
A debtor who is unable to repay his/her debts to file a bankruptcy petition against himself/herself with the Court. To investigate the causes of insolvency and to punish the bankrupt if any breach of the bankruptcy provisions is involved. Under the IVA, a debtor makes a repayment proposal to the Court and the creditors.
Don’t Miss: Can You Rent After Bankruptcy
After Your Bankruptcy Is Discharged
Once you are discharged from bankruptcy, your credit rating will be R9. An R9 rating is the lowest credit rating you can have. You will have this rating for 6 years if it was your first bankruptcy and for 14 years if it is your second bankruptcy.
An R9 credit rating can make it hard to get a mortgage or a credit card. For example, instead of a credit card, banks might give you prepaid cards or cards that require you to collateral. It might also be hard to get other types of loans, or even good interest rates on loans.
If it is your first bankruptcy, you must wait 6 or 7 years for the information about your bankruptcy to be removed from your credit report. Both your credit rating and credit score will also be erased. Your credit report will look like you never had any credit before.
You will have to start building your credit again. You can do this by opening a bank account and getting a credit card. It is important to use your credit carefully so you do not get in debt again.
How To Stop Creditors From Calling You May Need To Resort To Legal Action
So if you successfully completed a bankruptcy and are now on the receiving end of somebodys telephone calls, dunning letters, or lawsuit regarding a debt that existed before you filed your bankruptcy, you need to talk to an experienced bankruptcy lawyer. If the offending creditor will not voluntarily stop their collection efforts against you, legal action against them must be considered. In many instances, the creditor is required to pay your reasonable attorney fees and you also may be entitled to compensation for their violation of the bankruptcy code.
If you are being harassed by creditors, dont hesitate to contact a bankruptcy attorney who is experienced in these matters. National Bankruptcy Forum can help you find a local bankruptcy attorney near you. The initial debt consultation is always free, and were standing by 24/7 to help. And if youre just considering bankruptcy for the first time to get rid of those annoying collector calls, take the next step today in rebuilding your financial future.
You may also be interested in:
Also Check: Ohio Chapter 7 Bankruptcy
Bankruptcy Timeline Step 5 Financial Freedom
About 90 days after the filing of the case, you can start checking the mail. The United States Bankruptcy Court will mail you the official order discharging you of all your debts. Now, the majority of your debts are officially history! At this point, you can check out Detroit Lawyers Credit Repair Kit to increase your score as quick as possible.
Remember, the bankruptcy timeline starts with a FREE INITIAL CONSULTATION. So, contact Detroit Lawyers at 248.237.7979 to take your first step towards financial freedom!!
What Happens If I Have Property I Can’t Keep
If you have assets that are not exempt, you’re required to turn those over to the trustee assigned to your case. The trustee’s job is to gather the nonexempt assets, sell them, and distribute the proceeds to your creditors who filed valid proof of claims. If your case is complicated, it can take the trustee months, or in rare cases, even years to track down the property and liquidate it.
The trustee may need your help in gathering the property. You have a duty that continues throughout the case to cooperate with the trustee and the court, or you risk the court revoking your discharge. Failing to cooperate means that you’ll likely experience the worst possible outcome: to lose your nonexempt property and lose almost any benefit that you would gain from the bankruptcy discharge.
Read Also: How To File For Bankruptcy In Illinois Without A Lawyer
