Discharge And Your Assets
Any assets that the Official Receiver or the trustee held or claimed during your bankruptcy remain under the control of the Official Receiver or the trustee.
They are not returned to you on discharge. It may be some time after your discharge before all your assets are dealt with. If your home has not been dealt with in a certain period, usually three years from the date of the bankruptcy order, your interest in it may be returned to you.
Find out more by reading our guidance publication, What will happen to your home?
If you are making payments under an income payments order or agreement you must continue to make these payments even after the date of your discharge.
Debtors Have Debts Frozen Are Protected From Legal Proceedings
Once a person is declared a bankrupt, their debt stops accumulating.
This means that the creditor cannot continue charging interest on the principal sum owed.
The creditor also cannot commence legal proceedings against the bankrupt to recover the debt owed before the debtor was declared a bankrupt, unless they obtain special permission from the courts to do so.
The Official Assignee, or the appointed PTIBs will manage the bankruptcy estate and work towards helping the bankrupt obtain a discharge from bankruptcy.
Bankruptcy is an unavoidable experience for some of us. Unfortunately, it will hinder you when making important career, business, or financial decisions, especially if someone conducts a bankruptcy search and discovers your financial mishap.
But if youre on the other side of the table and will be the one hiring, lending, investing, or even job hunting, bankruptcy searches will help you decide more wisely.
In Singapore, a bankruptcy search will tell you an individuals bankruptcy status, while a corporate insolvency search will inform you of an organisations liquidation status. Both can help you make a smarter financial decision.
Advantages And Disadvantages Of Bankruptcy
If you’re trying to decide whether you should file for bankruptcy, your credit is probably already damaged. But it’s worth noting that a Chapter 7 filing will stay on your for 10 years, while a Chapter 13 will remain there for seven. Any creditors or lenders you apply to for new debt will see the discharge on your report, which can prevent you from getting any credit.
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How Do I Find Out The Official Date Of My Discharge Order
Your order of discharge will have a date on the form that is the official date of discharge. When you receive your bankruptcy order, keep it in a secure place. If you have a paper copy, you could store it with your other documents that have important dates, like your bankruptcy petition, car insurance, retirement plan, and mortgage documents. If you have a digital copy, make sure access is secure. You may be asked to present a copy of the order while youâre trying to reestablish your credit, or in other circumstances where a credit check is required. If you file bankruptcy in the future, youâll need to know the date you filed the petition for your more recent bankruptcy.
On The Insolvency Register
The Insolvency Register, also known as the bankruptcy register we have more information about this here features information about your bankruptcy including the date it was started and when you should be discharged by.
You can access the insolvency register for free, simply search for your name and location and you will find your listing. Its a good idea to keep an eye on this as your bankruptcy progresses to ensure all the information input on it is correct.
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How Discharge Affects Your Home
The official receiver has 3 years to take action in relation to your home, this means it wont be affected by your discharge. Your share in your home will become yours again if they haven’t done any of the following within 3 years from the date your bankruptcy order was made:
- sold your share to someone – like your partner, friend or family member
- applied to the court for an order that you and anyone else living in your home have to leave
- applied to the court for a charging order
- come to an agreement youll pay them the value of your share
Find out more information about how bankruptcy will affect your home.
Are All Of The Debtor’s Debts Discharged Or Only Some
Not all debts are discharged. The debts discharged vary under each chapter of the Bankruptcy Code. Section 523 of the Code specifically excepts various categories of debts from the discharge granted to individual debtors. Therefore, the debtor must still repay those debts after bankruptcy. Congress has determined that these types of debts are not dischargeable for public policy reasons .
There are 19 categories of debt excepted from discharge under chapters 7, 11, and 12. A more limited list of exceptions applies to cases under chapter 13.
Generally speaking, the exceptions to discharge apply automatically if the language prescribed by section 523 applies. The most common types of nondischargeable debts are certain types of tax claims, debts not set forth by the debtor on the lists and schedules the debtor must file with the court, debts for spousal or child support or alimony, debts for willful and malicious injuries to person or property, debts to governmental units for fines and penalties, debts for most government funded or guaranteed educational loans or benefit overpayments, debts for personal injury caused by the debtor’s operation of a motor vehicle while intoxicated, debts owed to certain tax-advantaged retirement plans, and debts for certain condominium or cooperative housing fees.
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Can I Get A Mortgage Or Other Loan After Bankruptcy
While your bankruptcy will remain on your credit report after you are discharged, you can apply for personal bank loans and car loans. These are private loans provided at the discretion of the lenders. Some lenders may require that you obtain a guarantor for your loan. Like all new credit, you should review the terms and conditions to make sure you understand them, including the interest rates and repayment terms, so that you are confident you can afford the payments within your budget.
Next Steps After Conducting A Bankruptcy Or Corporate Insolvency Search
After finding out whether an individual has been declared bankrupt or a company is in the process of a compulsory winding up, the person conducting the search may decide on his or her next steps.
If an employer finds that a job applicant is a bankrupt, they may consider carefully which role to offer to the applicant, if any.
For existing employees who have been declared bankrupt, the employer may wish to review the individuals scope of duties, or require the individual to apply to the High Court for permission to take on a managerial or directorial role.
If a prospective creditor finds that the individual is bankrupt, the creditor may decline to offer the loan or offer the loan on more onerous terms to protect his investment. For example, the creditor may charge higher interest rates for extending the loan.
Similarly, if a prospective investor finds that the company has been served a court order to wind up, the investor may not want to invest in the company. A job applicant may also not wish to embark on employment opportunities with the company as the employee may not be paid a salary or receive other employment benefits.
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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.
Bankruptcy In The United States
Like the economy, bankruptcy filings in the U.S. rise and fall. In fact, they are like dance partners where one goes, the other usually follows.
Bankruptcy peaked with just more than two million filings in 2005. That is the same year the Bankruptcy Abuse Prevention and Consumer Protection Act was passed. That law was meant to stem the tide of consumers and businesses too eager to simply walk away from their debts.
The number of filings dropped 70% in 2006, but then the Great Recession brought the economy to its knees and bankruptcy filings spiked to 1.6 million in 2010. They retreated again as the economy improved, but the COVID-19 pandemic easily could reverse the trend in 2021. It seems inevitable that many individuals and small businesses will declare bankruptcy.
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Your Bankruptcy Case Is Over When You Receive A Final Decree Not The Discharge
Unless you do something wrongsuch as forget to file your debtor education certificateyou’ll get your discharge before the case is closed. The court won’t close the case until other matters get wrapped up. Here’s how this works in Chapter 7 and Chapter 13.
- In a Chapter 7 case without assets or litigation, most filers receive the debt discharge about 60 days after the 341 meeting. If you didn’t lose assets in the bankruptcy, and the court doesn’t need to address a motion or lawsuit, the court will close your case a few days later.
- In a Chapter 7 case involving assets or litigation, it might take longer to receive the discharge if someone objects to your discharge. Also, the matter will stay open until the trustee sells property and handles creditor payments and until the court resolves any litigation.
- In Chapter 13, you’ll receive a debt discharge after you complete your three- or five-year repayment plan. The court will close the case after the trustee submits a final report outlining payment distributions.
You’ll find more timing details in After the 341 Meeting Is My Chapter 7 Case Closed?
What Bankruptcy Records Exist In Canada
The official bankruptcy records in Canada are compiled by the Office of the Superintendent of Bankruptcy Canada and are public records. This means that any member of the public can access them via an internet search tool on the OSB website, although there is a fee, and searches must be very specific.
The OSB sends a monthly list of new bankruptcies to each of the credit bureaus , who record them on their credit histories of individual consumers. The OSB also sends information on bankruptcies that have been discharged , and the bankruptcy record for each person is removed from that persons credit report after a set number of years.
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Figuring Out Which Debts Are Discharged
The reason it does not state which debts are discharged is that it is simply impossible.
The bankruptcy code provides numerous exceptions to which debts are discharged. These exceptions are codified in section 523 of the Bankruptcy Code.
To further complicate matters, each bankruptcy chapter incorporates various parts of section 523 differently, so a debt that is discharged in a Chapter 13 case, for example, may not be discharged in a Chapter 7 or 11, etc.
Some of these exceptions, such as debts incurred through fraud, require the creditor to actively object within a very specific time frame and then prevail at trial, in order for the debts to not be discharged. But many others are automatically not discharged if certain conditions are met, and those conditions frequently have many exceptions of their own.
More On Which Debts Are Discharged In Bankruptcy
A good example of this is tax obligations. For a quick look at how income tax dischargeability is determined, my taxes in bankruptcypage might be helpful.
A lot of the criteria for determining whether a debt is discharged is subject to argument and can only be decided by a Judge if brought in front of the judge by one of the parties specifically. Without that, the best the court can do is issue a general discharge that applies to all those debts which do not have a specific exception from discharge in the bankruptcy code.
Cost Of An Online Bankruptcy Or Corporate Insolvency Search
The fee for an online bankruptcy search in Singapore is $6 per search result you want to view. This is regardless of whether the result is positive or null, or if an individual has been discharged from bankruptcy. The same fee applies for an online corporate insolvency search.
Payment can be made with a Visa or MasterCard credit or debit card, or via eNETS Direct Debit.
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How Can The Debtor Obtain Another Copy Of The Discharge Order
If the debtor loses or misplaces the discharge order, another copy can be obtained by contacting the clerk of the bankruptcy court that entered the order. The clerk will charge a fee for searching the court records and there will be additional fees for making and certifying copies. If the case has been closed and archived there will also be a retrieval fee, and obtaining the copy will take longer.
The discharge order may be available electronically. The PACER system provides the public with electronic access to selected case information through a personal computer located in many clerk’s offices. The debtor can also access PACER. Users must set up an account to acquire access to PACER, and must pay a per-page fee to download and copy documents filed electronically.
Difference Between Entering A Discharge And Closing A Bankruptcy Case With A Final Decree
When the court enters a discharge in your bankruptcy, it wipes out your personal liability for all debts that were included in the discharge. In Chapter 7 bankruptcy, you normally receive a discharge a few months after filing your case. If you filed for Chapter 13 bankruptcy, you typically have to complete your Chapter 13 repayment plan before the court will grant you a discharge.
Even if you receive a discharge, your bankruptcy remains open until the court enters a final decree or order closing your case. But the court will not close your bankruptcy if the trustee is continuing to administer your case .
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May An Employer Terminate A Debtor’s Employment Solely Because The Person Was A Debtor Or Failed To Pay A Discharged Debt
The law provides express prohibitions against discriminatory treatment of debtors by both governmental units and private employers. A governmental unit or private employer may not discriminate against a person solely because the person was a debtor, was insolvent before or during the case, or has not paid a debt that was discharged in the case. The law prohibits the following forms of governmental discrimination: terminating an employee discriminating with respect to hiring or denying, revoking, suspending, or declining to renew a license, franchise, or similar privilege. A private employer may not discriminate with respect to employment if the discrimination is based solely upon the bankruptcy filing.
Your Bankruptcy Discharge Date
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In a Nutshell
Obtaining a bankruptcy discharge is the primary goal of every individual who files bankruptcy. The discharge date is the most important date in a personal bankruptcy, second only to the date the case was initially filed. Letâs take a look at 4 things you should know about your bankruptcy discharge, when your discharge will be granted by the bankruptcy court, and how to figure out the date of your discharge even if you canât find your paperwork anymore.
Written bythe Upsolve Team. Reviewed byAttorney Andrea Wimmer
Obtaining a bankruptcy discharge is the primary goal of every individual who files bankruptcy. The discharge date is the most important date in a personal bankruptcy, second only to the date the case was initially filed. Letâs take a look at 4 things you should know about your bankruptcy discharge, when your discharge will be granted by the bankruptcy court, and how to figure out the date of your discharge even if you canât find your paperwork anymore.
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Waiting For A Bankruptcy Removal From Your Credit History
Once you wait seven to 10 years, the bankruptcy public record will automatically be deleted, and future creditors won’t be able to see it.
The individual accounts that had the debts may have already been deleted during the bankruptcy discharge and bankruptcy plan phase. In some cases, these accounts must remain on the credit report.
The best thing to do is build credit while waiting for the bankruptcy record to clear, follow repayment plans, and avoid more debt.
Fans Of Nbcs The Office May Remember An Episode In Which Michael Scott Yells To His Office I Declare Bankruptcy Unfortunately Theres A Lot More To Fixing A Heap Of Debt Than Making A Loud Proclamation Filing For Bankruptcy Is A Complex Legal Process That Might Save You Money But It Also Comes With Serious Consequences Youll Want To Consider
The first step in determining whether a bankruptcy is right for you is defining what it is. Here are a couple important terms to know:
- Bankruptcy is a legal means by which someone with a large burden of debt can get out from under it. In a 1934 case , the U.S. Supreme Court defined the purpose of bankruptcy as giving a new opportunity in life and a clear field for future effort, unhampered by the pressure and discouragement of preexisting debt. In other words, its an opportunity for a financial do-over.
- If bankruptcy is the end goal, a bankruptcy discharge is a tool used to accomplish it. A bankruptcy discharge is a court order that releases a debtor from personal liability for specific debts. It legally prohibits a lender or creditor from taking any action to collect the debt in question.
Sound too good to be true? In several important ways, it is. For one, the bankruptcy shows up on your credit reports for seven to 10 years, depending on the type of bankruptcy you file, and will almost surely harm your credit scores. It also only applies to certain specific types of debts, so its not a catch-all remedy.
Follow along to learn more about discharged debt and whether a Chapter 7 or Chapter 13 bankruptcy might make sense for you. If in doubt, work with a qualified or bankruptcy lawyer to ensure you make the best decision for your needs.
Do you really need to talk to a credit counselor if youre considering bankruptcy?
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