Filing for bankruptcy can seem intimidating or even a little scary. Still, it is an excellent way for Sarasota residents to regain their financial footing and leave their financial crisis behind. One of the more challenging aspects of the process is filling out all the paperwork correctly and on time to ensure you don’t miss any deadlines. Of course, a bankruptcy attorney is the best ally for ensuring all documentation is processed appropriately, as they can provide the information you need to navigate your bankruptcy successfully. This article will discuss the bankruptcy discharge paperwork – what it is, and why it is essential to your filing.
Bankruptcy discharge paperwork is provided to a debtor once they complete their case. These documents will inform your creditors and any relevant collection agencies about the bankruptcy’s completion, typically rendering the debtor’s debts uncollectible.
Bankruptcy discharge paperwork is often needed to move forward with tax and financial transactions after the bankruptcy. These documents can:
● Provide the IRS with proof of and discharged or eliminated tax debt from the bankruptcy case. When filing tax returns following a bankruptcy, an individual taxpayer can ask that certain debts be excluded from their filing, such as alimony, child support, and certain other obligations.
● Provide future employers with the information they may need to determine eligibility for a job. Although bankruptcy rarely prevents an individual from securing a position, there are some jobs (such as being required to handle large sums of money) that someone who has filed for bankruptcy may be disqualified from. Most potential jobs will not be jeopardized by a bankruptcy filing, however.
● Provide mortgage lenders or loan officers with the documentation they need before extending new credit after a bankruptcy. Reinstatement is the process of applying for a new loan or mortgage after bankruptcy, which can be problematic in some cases. A prospective lender will generally request to review a copy of the bankruptcy discharge papers before proceeding with the application process.
Provide documentation required for a landlord considering renting a property to you. The majority of Florida apartment complexes require a past bankruptcy client to prove that they have cleared the bankruptcy, typically by reviewing bankruptcy discharge paperwork.
In conclusion, bankruptcy discharge paperwork proves that your debts have been eliminated. Creditors do not have the legal right to take action on debt collection once debt discharge has been approved. In fact, they cannot even contact you regarding any discharged debts. The bankruptcy court will maintain a record of the bankruptcy filing and submit it to the National Registry of Bankruptcy Trustees. Creditors will have the ability to research any case to determine whether the court revoked the discharge at any time. If you have completed the bankruptcy process and do not have a copy of your bankruptcy discharge paperwork, you can contact the court where you filed for bankruptcy or obtain a copy of your bankruptcy discharge papers from an online provider.
Do you have any other questions about bankruptcy? The law firm of Richard V. Ellis is here to help. Our bankruptcy attorneys have spent decades assisting Sarasota residents to achieve a fresh start through the bankruptcy process, and we are ready to speak with you today.