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Why are old bankruptcy documents important?

On Behalf of | Jan 1, 2019 | What Bankruptcy Can Do |

When your bankruptcy is done, you are eager to move on. Many people never want to even look at their old bankruptcy paperwork. Even so, you should still preserve your bankruptcy documents and keep them in a safe location. There may be some occasions when you need to access your old bankruptcy paperwork. In fact, your documents may even help you with your financial future in Tennessee.

As US News and World Report explains, at some point following your bankruptcy, you may want to approach a lender for a mortgage on a home or a loan to finance a new business. However, the subject of your bankruptcy is bound to come up, at which time your lender may ask to see any number of your bankruptcy documents. These can include your bankruptcy petition or the court documents of your bankruptcy filing.

You might feel uncomfortable with producing reminders of your past bankruptcy, feeling that a lender might look upon the documents as proof that you cannot be trusted with a loan. However, lenders are willing to take a chance on people that have completed bankruptcy. You just have to be as open as possible about your experience and how you have changed your financial practices in the meantime.

Additionally, just because you completed bankruptcy does not mean you are permanently done with your creditors. Someone at a company that you had owed money to might look at an old file that lists your outstanding balance but says nothing about the debt discharge by the bankruptcy court. The company might contact you asking for a payment your bankruptcy already settled. Producing your old paperwork can prove that the matter has been settled.

Because bankruptcy matters differ from person to person, this article and its contents should not be considered legal advice. Its purpose is to inform readers on what bankruptcy can do for them.