So you’ve filed for bankruptcy. Now what? Bankruptcy discharge paperwork is a document that tells you whether you qualify for bankruptcy protection and the debts discharged in your bankruptcy case.
Bankruptcy discharge papers are excellent for many things, including:
1) When a debtor completes a bankruptcy, bankruptcy discharge papers are provided. These papers will alert creditors and collection agencies about the completion of the bankruptcy. The debtor’s debts will not be collectible.
2) Discharge papers provided to the IRS show the eliminated tax debt in a bankruptcy case. When filing taxes after bankruptcy, a taxpayer can request to exclude certain debts. Debts discharge in a bankruptcy case may include alimony, child support, and certain other debts.
3) In almost all cases, bankruptcy will not prevent you from getting a job, but it could disqualify you from getting certain jobs in the future. An employer’s decision on whether to hire you in the first place is likely to be based on whether the job you are applying to do would be one that you would be qualified to do and whether it is consistent with your qualifications. However, employers may not hire you if they suspect you are a credit risk.
4) Applying for a new loan or mortgage after a bankruptcy is referred to as “reinstatement.” Reinstating your credit can sometimes be quite challenging. A lender will typically want to see a copy of your bankruptcy discharge papers before you can move forward with the application process. If you do not have a copy of your bankruptcy papers, you may need to contact the court where you filed for bankruptcy or you can get a copy of your bankruptcy discharge papers from an online provider.
5) If the court has discharged a bankruptcy (meaning no more payments are required) the individual will have to wait for some time before trying to rent an apartment. The reason for this is that bankruptcy is a negative mark on a person’s credit report. The landlord cannot see what the customer’s credit score is, but they can see that a customer has gone through bankruptcy. Discharge paperwork may need to be shown to a prospective landlord if you are moving into an apartment after you have filed for bankruptcy. Most apartment complexes require a former bankruptcy client to show that he or she has cleared the bankruptcy.
In a nutshell, bankruptcy discharge paperwork is essentially a death certificate to your debts. Your creditors cannot legally take action to collect any debts discharged once approved. After bankruptcy, creditors cannot legally contact you regarding your discharged debts. However, the bankruptcy court will keep a record of your bankruptcy case and file this with the National Registry of Bankruptcy Trustees. Any creditors can look up your case and see whether the court revoked the discharge.