Debtor's Duties After Bankruptcy Discharge
A discharge from bankruptcy means your bankruptcy case is finalized by the bankruptcy court. When a judge is ordering it, you no longer have the responsibility in paying the debts you owe. After the discharge, however, you as the debtor have various duties in certain scenarios. Deal accordingly with issues pertaining to personal assets, taxes and other remaining debts.
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Taxes
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Report to the bankruptcy trustee during discharge if you have the issue of back taxes going back three years. Also, return any personal tax refund checks to the bankruptcy trustee. Not reporting these tax issues may mean a revoking of your bankruptcy discharge by a judge. This is applicable in both Chapter 7 and Chapter 13 cases. In Chapter 7, your assets are liquidated to pay your debts, which are completely forgiven; in Chapter 13 you pay back debts in a payment plan based on your income.
Personal Assets
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Tell the trustee about any unpaid, personal luxury goods worth more than $500 to a single creditor. Report to the trustee whether you bought the items 90 days before filing for bankruptcy. Indicate all other unpaid assets to the trustee if the debts are not on your bankruptcy papers. This is again imperative in avoiding a discharge revocation. It's also applicable to both Chapter 7 and 13 cases.
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Reporting Other Debts
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Indicate other types of debts you have to the trustee. Some examples include alimony payments and unpaid government fines. Also, report unpaid governmental student loans. Reporting them as a hardship might help in a discharge from a judge. Also, list unpaid personal injury judgments against you prior to filing bankruptcy. Additionally, present any cash advances worth more than $750 from one or more of your credit cards.
Handling Lawsuits and Voluntary Payments
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As part of your duty, handle any lawsuits arising on unpaid debts after a bankruptcy discharge. File an answer to a lawsuit with a lawyer. Indicate whether the debt is one of the debts on your discharge. If it is, the lawsuit is a likely dismissal case by the judge. Nevertheless, pay any remaining debts after bankruptcy as a voluntary duty. This includes debts already part of the discharge process.
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