The process of paying off your debts through Chapter 13 bankruptcy may have felt like an ordeal, but you finally see your bankruptcy coming towards an end. As you contemplate returning to a life free from debt, you must also plan to have your bankruptcy paperwork safe and available should you need it.
It is natural to want to keep your past bankruptcy out of sight and out of mind. However, as U.S. News and World Report explains, there may be times when you will need to provide some of your old bankruptcy documents.
Providing paperwork to a lender
The subject of your bankruptcy may come up if you seek a loan, particularly if you want a major loan to buy a house or a business. Your lender may ask to see your bankruptcy petition or the court’s notice of your bankruptcy filing. Providing this information may be helpful since it allows your lender to learn as much about your bankruptcy as possible and not just the simple fact that you went bankrupt.
To prepare for the eventuality that a lender will want to address your bankruptcy, you could write up a letter of explanation that details why you went bankrupt and how you have changed your financial habits to avoid debt and live more responsibly. Adding this letter to your bankruptcy documents may help your lender see that you have learned from your experience and that you are not a high financial risk.
Addressing old creditor claims
With bankruptcy over with, you should not have to give your old debts a second thought. Unfortunately, one of your creditors might remind you of an old claim by sending you a notice requesting payment for a debt you had already paid off or a judge discharged in bankruptcy. You may have to provide your bankruptcy forms to prove that you no longer owe the creditor money.