When you receive your bankruptcy discharge your trustee will provide you with a discharge certificate that is what officially releases you from the debts that were included in your bankruptcy; certain debts won’t be discharged in bankruptcy and any debts that you accrue while in bankruptcy will not be eliminated by your bankruptcy discharge.
In order to receive your fresh financial start you need your discharge certificate.
Included with your discharge certificate will be a disbursement summary that covers any of the dividends that were paid out during your bankruptcy and to which creditors.
Benefits of Keeping Your Bankruptcy Discharge Paperwork
It is important that you keep your bankruptcy discharge papers, and other bankruptcy documents for several reasons:
Receiving Protection From Creditors: If your creditors contact you demanding payment for debts that were included in your bankruptcy, you can show them your bankruptcy discharge certificate, which proves that you no longer have a legal responsibility to pay the debt that is listed on your bankruptcy paperwork;
Getting New Credit: If you apply for new credit through a loan or credit card application your creditor may request to see proof that prior debts of yours have been dealt with;
Dealing With Collection Agencies: It is common for your credit report to not be updated after your bankruptcy discharge for some time, in which case you might still receive the occasional phone call or letter from your creditors or collection agencies demanding payment on debts that were discharged in your bankruptcy.
Having your bankruptcy discharge papers available will show that you have dealt with these debts which will help you keep your credit record up to date and deal with any collection agencies or creditors who contact you for payment. While one credit bureau in Canada (Trans Union or Equifax) might have updated their records to include your bankruptcy the other credit bureau may not;
Filing a Second Bankruptcy or Consumer Proposal: You will receive money counselling skills that will help you manage your debt in the future, but you may find yourself in the need of a licensed insolvency trustee again in the future.
Keeping your discharge paperwork will help your trustee move the process along if you need to enter into insolvency through bankruptcy or a proposal again.
While a record of your first bankruptcy or proposal is stored by the government and at your trustee’s office, it is best to have a hard copy at hand to ensure all records are readily and easily accessible.
What if I Have Lost or Misplaced my Bankruptcy Discharge Certificate?
If you have misplaced your discharge paperwork then you may contact your trustee or the Office of the Superintendent of Bankruptcy to ask for another copy of your discharge paperwork.
It is important to store these new documents in a safe place.
This paperwork is very important and should be treated as such.
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