You’ve been making your bankruptcy payment every month for the past three to five years and you are nearing the end of the bankruptcy, what happens now? There are a number of steps that must be completed in order to receive the final discharge order from the Court.
First, the bankruptcy Trustee will review your case a final time to ensure that all creditors were appropriately paid their respective claims. Then a Notice of Completion of Plan will be filed by the Trustee. This is a document stating the bankruptcy has been successfully completed and you are no longer required to make plan payments to the Trustee. A Motion for Entry of Discharge will also be mailed to you and your attorney. Your attorney should provide you with instructions on how to properly fill out the discharge paperwork. Be advised, the Motion for Entry of Discharge does not mean that you are completely discharged from the bankruptcy. There are still a few more steps that need to be completed.
Before your attorney can file the Motion for Entry of Discharge it is imperative you have completed the required financial management course and that your attorney has filed the appropriate certificate showing you’ve completed the required course. Then, your attorney can file the Motion for Entry of Discharge.
The Trustee will then file a Final Report and Account which shows all of the creditors who have been paid and how much they were paid. About a month after the Motion for Entry of Discharge is filed, assuming there are no objections, the Court will enter an order granting the Motion for Entry of Discharge. A copy of the Discharge Order will be mailed to you. This is an extremely important document that you will want to retain for your records. With the exception of secured debts, taxes and student loans, all debt paid through the bankruptcy plan and listed on the bankruptcy petition should be discharged and are no longer collectible by the creditor.