Your House And Other Real Property After Bankruptcy
Here are answers to some common questions about homes and mortgage loans after bankruptcy:
What should I do if I want to keep my home after bankruptcy? Make timely payments if keeping your house. If you did not reaffirm your home mortgage loans in Chapter 7 but are current and plan to keep your property, just continue to make your house payments on time. The bank still has a lien on your home and can foreclose if you fall behind on the payments. Note, as mentioned above, if you did not reaffirm the debt, your payments will not be reported to the credit bureau.
Can I walk away from my home after my Chapter 7 bankruptcy? If you did not reaffirm your mortgage loan in Chapter 7, you have more options than if you reaffirmed the loan. If you do not reaffirm your mortgage loan and decide later that you no longer wish to keep your home, you can simply stop making the payments. Eventually, the property will go into foreclosure, but the bank will not be able to obtain a deficiency judgment against you.
Can I walk away from my home after my Chapter 13 bankruptcy? It depends. Chapter 13 does not discharge your secured loans in most cases unless you surrender the property in your Chapter 13 plan. If you surrendered the property in your Chapter 13 plan, then you can treat it the same as if you had discharged the debt in Chapter 7.
Quick Note: In most instances, modifying a loan that was not reaffirmed will not cause the payments to show on your credit report.
Obtain Bankruptcy Discharge Papers Online
Bankruptcy discharge papers confirms that court relieves a debtor for any existing legal debt obligation to certain creditors at the time of filing bankruptcy. After bankruptcy discharge it is advised to retain an authentic official bankruptcy court records, dismissal papers, or final decree to prove that your bankruptcy is finished.
Bankruptcy discharge order is normally 2 to 3 page discharge order and includes:
01. Bankruptcy Records
The most important bankruptcy discharge record in actual is discharge order issued by bankruptcy judge. This official order of the court contained in bankruptcy discharge papers relieves the debtor from all existing liabilities / debts listed in the bankruptcy petition filed.
It bears signature of Judge and 2nd page clarifies debts that are discharged and debts not discharged.
02. Explanation of Bankruptcy Discharge Order
This page of explains to creditors that collection of certain debts is now prohibited. It also clarifies that what type of debts are discharges and debts that are not discharged.
03. Certificate of Service
This page is an additional page sometimes attached to discharge papers and confirms that court has served this order to debtor, attorneys, all creditors listed in the bankruptcy case and related parties informing that debtor under bankruptcy is discharged.
Why you need an official authentic bankruptcy records:
1. To apply for new loans or credits
2. To apply for fresh mortgage
3. To update your credit report
Does Bankruptcy Show Up After 10 Years
A Chapter 7 bankruptcy stays on your credit report for ten years after your filing date. A Chapter 13 bankruptcy gets removed after seven years because debtors repay at least some of their debt. While the bankruptcy information remains on your credit report, anyone who pulls your credit can learn of your filing.
You May Like: How Does Bankruptcy Work In Illinois
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?
Notice To The Creditors
When you fill out your bankruptcy petition, you will list everyone that you owe money to. The court will then notify your creditors of the filing. Some creditors may, then, attend your Meeting of the Creditors.
The Meeting of the Creditors is held between you, your bankruptcy attorney, and your creditors. At this meeting, your creditors will have a chance to interface with you in person over the details of your filing and provide any objections. This meeting can be attended by the public, though no invitations or postings are sent out.
Also Check: Can A Person File Bankruptcy Without A Lawyer
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.
The Pacer System & Court Records
A bankruptcy filing becomes public record after you submit your bankruptcy petition. Someone from the court will upload your documents and bankruptcy schedule into the Pacer system.
The PACER system is a program used by the federal courts to keep track of any and all court documents. Any kind of paperwork that goes through a court will usually be added to the PACER system, and can therefore be accessed by the public. To access the system, you need to create a PACER account and pay a small fee per page that is viewed.
Also Check: How To File Bankruptcy In Tennessee
How Discharge Affects Your Belongings
Discharge from bankruptcy doesn’t mean you’ll get back any belongings, even if they haven’t been sold yet. It might take some time for the official receiver to deal with them.
If you come by any new assets after you’ve been discharged, these will usually remain yours and can’t be claimed by the trustee. An important exception to this rule is any payments you receive by claiming for payment protection insurance which was mis-sold before you become bankrupt.
Can You Get A Copy Of Your Bankruptcy Discharge Papers
The first place to check when you need a copy of your bankruptcy discharge papers is with the Clerk of the Court where your case was filed. Some courts will allow you to search the record online for free, while others charge a fee for searches. If you need copies of the document, there will be a fee as well.
Read Also: What State Has The Highest Bankruptcy Rate
Get Your Bankruptcy Records Fast
We start processing your order as soon as the order form is submitted. There is no need to spend hours struggling to get a copy of your bankruptcy paperwork.
Bankruptcy Discharge Papers
Includes: Discharge Papers + Schedules D, E, & F. All Creditors included in case
Bankruptcy documents are also available for a fee at . In order to use the pacer.gov service, you will need to be a registered user and have you billing information stored. We DO NOT store any billing information for this one time transaction.
Frequently Asked Questions:
What benefits does this service have?
Which option should I choose?1. Complete bankruptcy file includes all documents related to the case: voluntary petition, all schedules, orders on all motions, and discharge order. Includes all creditors in case.2. Schedules & discharge papers include schedules D, E, F, and discharge order. Includes all creditors in case.3. Bankruptcy discharge papers only include the Discharge order, not a list of creditors that were discharged in the case.
Can I order records for someone else?Yes, if we can find the file, you can request the bankruptcy records of anyone.
Bankruptcy Process And Discharge
When individual debtors file for bankruptcy, most of their debts are discharged at the conclusion of their bankruptcy case. In Chapter 7 cases, a debtor’s non-exempt assets are seized, and the proceeds are used to pay creditors. This is a short process lasting usually a few months, after which any remaining unpaid debts are discharged and the debtor is no longer legally responsible for them. In Chapter 13 cases, a debtor pays his debts with a repayment plan that lasts three to five years. As with Chapter 7, any unpaid debts left behind are discharged as long as the debtor completes all obligations under the plan.
At the completion of the case, the court enters an order discharging debtor, which is public record and available to you and to anyone else who wants to find it. Read More:What Happens After Bankruptcy Discharge?
Don’t Miss: How Does Bankruptcy Affect Tax Filing
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.
Do You Have To Disclose A Bankruptcy After 7 Years
Bankruptcy is the worst possible credit event, with credit bureaus listing personal bankruptcies for a minimum of 10 years. Usually, it is not necessary to disclose a 10-year-old bankruptcy unless you are responding to a specific question on an official document, such as an application for credit or employment.
Recommended Reading: How Much Does Bankruptcy Affect Credit Score
Bankruptcy Discharge Certificate Canada: How Long Does My Credit Score Take To Recover From Bankruptcy
Your bankruptcy will stay on your for 6 years from the date your bankruptcy discharge certificate Canada is issued. If you have actually been bankrupt more than once, then it might be reported for approximately 14 years from the date of your discharge.
Having actually removed your financial obligation problems by getting your bankruptcy discharge certificate Canada, most individuals see they now have the ability to construct a more powerful financial future. Unless you urgently need to purchase a house for the very first time or buy an auto, you need not also bother with getting approved credit to take on debt right away. Many find they have the ability to live without credit considering that they have a more powerful cash flow than prior to bankruptcy. They are now able to start saving.
While you remain in bankruptcy, you are learning to live your life without credit. You are living essentially on a cash basis. You are not spending more than you make. Your Trustee is advising you to do so on an after-tax basis so that you will not have a nasty surprise when tax time comes.
Who Can Issue A Bankruptcy Discharge Certificate Canada
Only a Canadian licensed insolvency trustee can carry out the bankruptcy administration and then provide the bankruptcy discharge certificate Canada. If neither the Trustee nor a creditor opposed the discharge and the Trustee issued the certificate, that means the bankrupt individual satisfied all of their obligations without the need for a court hearing.
If either the Trustee or a creditor opposes the discharge of the bankrupt individual, by issuing a notice of opposition to discharge, that indicates:
The court would then determine what type of bankruptcy discharge the bankrupt should receive:
Also Check: How Often Can You File Chapter 7 Bankruptcy In Michigan
Records Against Property You Own
To remove the record of your bankruptcy from the Land Charges Register you must do both these things:
- fill in Land Charges form K11 on GOV.UK – theres a £1 charge for each entry you want to cancel
Bankruptcy entries are automatically removed from the Land Charges register after 5 years if theyre not renewed. Find out more about what happens when bankruptcy ends on GOV.UK.
Bankruptcy Discharge Certificate Canada: What Debts Are Not Forgiven And Will Survive My Bankruptcy
What debts cannot be discharged? A bankruptcy discharge certificate Canada provides the discharge of all unsecured debts, except for:
These kinds of debts survive bankruptcy and are not released. The person will need to continue paying those financial obligations according to their terms. All other debts are discharged and do not have to be paid.
Also, any debts that are properly secured by one of your assets, such as a house mortgage or car financing, are not released as a result of your bankruptcy or your bankruptcy discharge certificate Canada.
Don’t Miss: What Happens If An Llc Files Bankruptcy
Will My Bankruptcy Discharge Record Be Published In The News
Another concern among bankruptcy filers is that their bankruptcy discharge will be published in their local paper.
Although the court will not notify the local paper, some publications have a small section like “Public Notices,” where they report small happenings at the local court. New births, deaths, marriages, and occasionally, bankruptcy filings. That said, it is an extremely outdated practice, and is only practiced in a handful of small towns throughout America.
What Happens In Every Bankruptcy Case
When you file a bankruptcy case, you’ll have to complete certain requirements before you can qualify to have your debts discharged . At a minimum, you’re required to:
- fill out bankruptcy paperwork with details about your financial situation, including your assets, debts, income, and expenses
- pay a filing fee
- provide 521 financial documentation to the bankruptcy trustee
- complete .
You’ll have to wait 60 days after your meeting of creditors before the court will issue your discharge order. If all of your property is exemptmeaning that you’re allowed to keep itthe court won’t have to take any further action in your case and will most likely close it.
Read Also: How Many Times Can You File Bankruptcy In Ga
Buying A New Or Used Car Bankruptcy
Can I get a car loan after bankruptcy? Yes, but first let me say that the best car is a paid-off car. Even if you are putting a couple of thousand dollars a year into maintaining an old car, it is still far less than the cost of purchasing a car on credit. If you can pay in cash for your car, that is almost always the best option. I recommend avoiding vehicle loans or keeping them very small.
That being said, if you need a car and cannot pay cash, financing a vehicle can help you rebuild your credit. Vehicle financing is often more available after bankruptcy than other types of credit.
Tips for financing a vehicle without getting ripped off
Shop around. Interest rates for post-bankruptcy buyers will be significantly higher than for buyers with excellent credit. However, it need not be an extortionary rate.
Never roll over an old car loan balance. If you still have a balance on your current car loan, the dealer may suggest that you roll it into a new car loan. Don’t do it. Rolling over the balance of an old car loan into a new loan is one of the worst financial mistakes someone can make when purchasing a car. I have had clients who were forced into bankruptcy by the enormous payments generated by such loans.
