Depending on what type of bankruptcy the single mom is involved in, the bankruptcy discharge will vary. The discharge is the permanent order that prohibits creditors from trying to collect on debts that were covered in the bankruptcy case. Personal contact, telephone calls, and letters and legal action against the debtor are all prohibited once the discharge order is issued by the court. If the creditor continues to collect on the discharged debt, they could face a punishment, usually in the way of fines, for contempt.
The clerk of the bankruptcy court, under The Federal Rules of Bankruptcy Procedure, will mail a copy of the discharge order to all of the creditors that were listed in the bankruptcy. The U.S. trustee, trustee in the case and the attorneys of the trustees will all receive a copy, along with the debtor and her attorney.
If the debtor loses the copy of the discharge, she should request a duplicate. The discharge will not only be an important part of her financial records, but is often needed to prove that she is no longer legally obligated to pay the debt. If creditors ignore the discharge and continue to try to collect money, a copy of the discharge will be needed to protect her from harassment.
Request a duplicate of the discharge through the office of the clerk of the bankruptcy court where the case was heard. Be prepared to pay for the duplicate as you will be charged for searching records, making copies and certifying the copies. If court records have already been archived, a retrieval fee may also be charged. Getting a copy of the discharge will take longer when the records that have to be searched out are older.
Although the discharge is to be considered final, it could be revoked if the creditor can show that it was obtained fraudulently. It’s important that the debtor make sure that all of the information she gives during the course of the bankruptcy is accurate and complete. The revocation request must be filed within a year of the discharge. The court hearing the bankruptcy case will decide if the allegations of fraud or failure to disclose information are true or not. The court will then decide if the discharge should be revoked.
Even though a creditor is not allowed to continue to try to collect on the debt once the discharge has been invoked, there are some situations where the debtor will pay back the discharged debt even though they are not legally obligated to do so. For instance, money owed to a friend or relative may have been included in the discharge. In order to keep the relationship healthy, these debts can voluntarily be repaid without jeopardizing the discharge.
For more information please visit www.singlemomfinancialhelp.com/