what is a lawyer supposed to do after a bankruptcy is discharged?

After you receive your discharge, your case might stay open for a long time. You must work with the bankruptcy trusteeoverseeing 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.

Full Answer

Is my bankruptcy case over when I get a discharge?

May 21, 2014 · It means that once you receive a discharge in Bankruptcy, that discharge is final unless you execute and file a valid reaffirmation agreement prior to the Order of Discharge. It also means the debt is dead, gone, kaput, deceased, over, and NO, you cannot now be sued on it unless one of the few exceptions applies, which they rarely do, and you’d know about it.

Who gets a copy of the Order of discharge in bankruptcy?

The Federal Rules of Bankruptcy Procedure provide for the clerk of the bankruptcy court to mail a copy of the order of discharge to all creditors, the U.S. trustee, the trustee in the case, and the trustee's attorney, if any. The debtor and the debtor's attorney also receive copies of …

What is a final discharge in bankruptcy?

May 12, 2020 · Every debt discharged in your bankruptcy should be noted as "discharged in bankruptcy" or something similar. The balance should be $0 (unless you reaffirmed the debt). If a debt does not show as discharged in bankruptcy, you can dispute the listing by sending a copy of your discharge to the credit-reporting agency along with the schedule (D, E ...

How do I dispute a discharge in bankruptcy?

Oct 24, 2021 · In other words, it’s 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.

What happens after your bankruptcy is discharged?

Following a bankruptcy discharge, debt collectors and lenders can no longer attempt to collect the discharged debts. That means no more calls from collectors and no more letters in the mail, as you are no longer personally liable for the debt. A bankruptcy discharge doesn't necessarily apply to all of the debt you owe.Oct 24, 2021

What should you do after bankruptcy discharge?

THREE STEPS TO REBUILDING YOUR CREDIT AFTER BANKRUPTCYStep One: Make arrangements to pay any nondischargeable debts.Step Two: Use secured credit cards or small loans to help build a record of on-time payments.Step Three: Avoid unnecessary post-bankruptcy debt.Buying a new or used car bankruptcy.May 12, 2020

Is a bankruptcy discharge final?

Your Chapter 7 bankruptcy case does not end when you get your discharge. It ends with the court's final decree. For most filers, a Chapter 7 case will end when you receive your discharge—the order that forgives qualified debt—about four to six months after filing the bankruptcy paperwork.

How do you know if bankruptcy has been discharged?

The bankruptcy is reported in the public records section of your credit report. Both the bankruptcy and the accounts included in the bankruptcy should indicate they are discharged once the bankruptcy has been completed. To verify this, the first step is to get a copy of your personal credit report.Aug 6, 2018

Can bankruptcy trustee take assets after discharge?

The trustee can revoke your discharge. If the trustee finds hidden assets, the trustee can ask the court to revoke or take back your discharge. The trustee can do this at any time before the case closes or, even after, up to one year after the discharge date.

Can a bankruptcy discharge be revoked?

If a creditor or the bankruptcy trustee files under Section 727, the entire discharge can be denied or revoked. The effect is even worse than if the bankruptcy was never filed. Denial or revocation under Section 727 is sometimes referred to as “bankruptcy hell” — for good reason.

What are 5 dischargeable debts?

Five Dischargeable Debts in a Chapter 7 BankruptcyCredit Card Debt. ... Personal Loans. ... Medical Bills. ... Vehicle Repossessions and Deficiency Balances. ... Mortgages and Foreclosure Balances. ... Seek Bankruptcy Debt Relief with a Qualified North Carolina Bankruptcy Lawyer.

What is the difference between bankruptcy discharge and dismissal?

A discharge is a win! The bankruptcy discharge order wipes out your personal legal liability to pay a debt. A dismissal is usually a loss. It means the bankruptcy case was closed before a discharge was entered.

What does bankruptcy discharged mean on a credit report?

A bankruptcy discharge releases the debtor from personal liability for certain specified types of debts. In other words, the debtor is no longer legally required to pay any debts that are discharged.

Will my credit score go up after Chapter 13 discharge?

Your credit score after a Chapter 13 Bankruptcy discharge will vary. Your new score will depend on how good or bad your credit score was prior to the filing of the Chapter 13 Bankruptcy. For most individuals, you can expect to see quite a dip in your overall credit score.

Can a creditor collect on a discharged debt?

Can a debt collector try to collect on a debt that was discharged in bankruptcy? Debt collectors cannot try to collect on debts that were discharged in bankruptcy. Also, if you file for bankruptcy, debt collectors are not allowed to continue collection activities while the bankruptcy case is pending in court.Oct 25, 2017

How far back does a bankruptcy trustee look?

Your bankruptcy trustee can ask for up to two years of bank statements. The trustee will look at your statements to verify your monthly payments to make sure they match the expenses you put on your bankruptcy forms.Dec 6, 2021

What happens if a creditor tries to collect on a debt discharged in bankruptcy?

What if a creditor tries to collect on a debt discharged in my bankruptcy? If a creditor contacts you, inform the creditor that the debt has been discharged in bankruptcy and give them your case number. If the creditor continues to contact you, let your attorney know.

How to rebuild credit after bankruptcy?

To start rebuilding your credit, you must (1) get any nondischargeable debts back on track; (2) start building a history of regular on-time monthly payments and responsible use of credit accounts; and (3) avoid taking on unnecessary debt.

Why does my credit score rise after bankruptcy?

One reason debtors often see their credit rating rise soon after bankruptcy is the reduced income-to-debt ratio. In other words, the amount of debt that they have compared to their income is now much lower. The income-to-debt ratio is a significant factor in credit scoring. Therefore, you want to keep this ratio low.

How long does it take to get a copy of your credit report after bankruptcy?

Check your credit report about three months after you receive your bankruptcy discharge. (It takes a while for the credit-reporting agencies to update your report.) You can get a free copy of your report once a year from each of the three major credit bureaus at www.annualcreditreport.com.

Who is Paul Midzak?

Paul Midzak focuses his practice on debtor defense, dispute resolution, consumer protection law, and Chapter 7 and Chapter 13 bankruptcy. He also advises businesses on a variety of legal matters.

What happens when you surrender your home in bankruptcy?

When you surrender a home in bankruptcy, you are informing the court and the creditor that you no longer wish to retain the property.

How long does a bankruptcy show on your credit report?

A Chapter 7 bankruptcy typically shows on your credit report for ten years from the date that your bankruptcy case was filed (not the date of discharge). A Chapter 13 bankruptcy should drop off your report seven years from the date you filed your case.

What does discharge mean in bankruptcy?

Discharge is the legal term meaning you’re not legally required to pay the debt, and collectors can’t take any further action to collect it. Following a bankruptcy discharge, debt collectors and lenders can no longer attempt to collect the discharged debts.

What is the purpose of bankruptcy?

Hunt ), 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.”.

How long does bankruptcy stay on your credit report?

A bankruptcy will remain on your credit reports for up to either seven or 10 years from the date you file, depending on the type of bankruptcy.

Is filing for bankruptcy a legal process?

Filing for bankruptcy is a complex legal process that might save you money, but it also comes with serious consequences you’ll 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:

Do I need to do pre bankruptcy counseling?

According to the U.S. Courts website, “All individual bankruptcy filers are required to complete pre-bankruptcy credit counseling and pre-discharge debtor education.”. Click here to find an approved counselor near you.

Does bankruptcy affect credit score?

Since your credit scores are calculated based on the information in your credit reports, a bankruptcy will affect your credit scores as well. This can make it more difficult to buy a home or a car with a loan, or even get a new apartment rental.

Is bankruptcy a good way to get out of debt?

Getting rid of debt collectors is a great benefit, but you may spend the better part of 10 years repairing your credit. A bankruptcy discharge may be the right way for you to get out of debt.

What to do with car loan after bankruptcy?

In a Nutshell. You have options for what to do with a car loan when filing a Chapter 7 case, including reaffirmation, redemption, or surrender. Entering into a reaffirmation agreement can lead to new debt problems if you default on your car loan payments after bankruptcy. The purpose of filing Chapter 7 bankruptcy is to put you in ...

What is secured debt?

A secured debt is connected to specific property, which is put up as collateral to secure the loan. Common secured debts are mortgages backed by real estate and car loans secured by the motor vehicle. An unsecured debt is not connected to any specific piece of property, such as credit card debts and medical bills.

Who is Jenni Klock Morel?

Jenni Klock Morel is a writer, nonprofit leader, and Social Justice Law Scholar. For years she practiced consumer bankruptcy law exclusively as a debtor's attorney, helping individuals and families file for Chapter 7 or 13 bankruptcy protection. Jenni left the practice of law to... read more about Attorney Jenni Klock Morel

Can a debt be discharged in bankruptcy?

Chapter 7 bankruptcy discharges the filer’s personal obligation to pay the secured debt, but it doesn’t erase the lien against the property itself.

What is a reaffirmation agreement?

A reaffirmation agreement brings back to life personal liability on a debt that would have otherwise been discharged at the end of a successful bankruptcy case. The U.S. Bankruptcy Code requires secured debts for personal property, including car notes, to be reaffirmed.

Can you repossess a car after bankruptcy?

Car repossession is proper after a Chapter 7 discharge because the lien on the car is not erased by the bankruptcy. If you default on your monthly car payment after bankruptcy, your lender has the right to repossess your vehicle. State law governs the repossession process.

What happens if you don't pay your car loan?

If you fail to make your monthly car loan payments, the car lender will repossess your vehicle. After a car repossession, the lender will typically sell the motor vehicle at auction. A deficiency balance occurs when the amount received at auction is less than the amount owed on the loan balance.

What to do after bankruptcy discharge?

First, make certain that you keep a full set of all of your bankruptcy documents, including the petition and schedules, the certificates of completion from your debtor education courses, any filed amendments, and, ...

What happens when you discharge a bankruptcy?

For most filers, a discharge marks the end of their bankruptcy case. The bankruptcy is officially over once the court issues a final decree following the the trustee’s “Final Report”. There are, of course, exceptions to this if the trustee needs to liquidate any property or resolve any litigation, but these instances are much less common.

What is secured credit card?

A secured credit card is similar to a pre-paid card - you can set up a secured credit card with cash as collateral/line of credit so that the charges, and more importantly the timely payments, are being tracked. This helps to show that you have control over your finances and you are able to maintain your payments.

How long does it take for a bankruptcy to be discharged?

In Chapter 7 bankruptcy, you normally receive a discharge a few months after filing your case.

Can you reopen a bankruptcy case?

In some cases, you may also want to reopen your bankruptcy. For example, if you accidentally forgot to list a debt or if a creditor is violating your discharge, you might ask the court to reopen your case to address these issues.

Can you file for bankruptcy if you received a discharge?

Just because you received a discharge doesn't mean that you have no more responsibilities in your bankruptcy. If you have a complex bankruptcy with ongoing lawsuits or appeals, your case might remain open for a long time after the court grants your discharge.

Can creditors reopen bankruptcy?

Even after your case is closed, the trustee, your creditors, or you can request that the court reopen your case. If the trustee or your creditors discover that you provided false information on your bankruptcy papers or didn't disclose all of your property , they can ask the court to reopen your case in order to administer those assets ...

Do not sell personal information?

Do Not Sell My Personal Information. Most debtors file for bankruptcy relief to discharge (wipe out) their debts. But your bankruptcy doesn't end when you receive your discharge. Your case is not officially over until the court closes it by entering a final decree or order.

What does "included in bankruptcy" mean?

having a zero balance, and. discharged, "included in bankruptcy," or similar language. Unfortunately, some creditors don't update information to the credit reporting agencies. This tactic could be a way to get you to pay up, even though you no longer legally owe the debt.

How long does bankruptcy stay on your credit report?

In short, yes. Not only will a bankruptcy filing remain on your credit report for seven to ten years, but you can expect information about the debts discharged (forgiven) in bankruptcy to continue to appear on your credit report, too. In this article, you'll learn what should—and should not—show up on your credit report after you receive ...

What does "charged off" mean?

charged off. having a balance due, or. converted to a new type of debt ( re-aged or given new account numbers, for example). Such reporting labels are often the reason creditors deny applicants credit. In some cases, applicants must pay off such debt as a condition of loan approval.