Blonch

The Fair Credit Reporting Act (FCRA) requires each of the nationwide consumer reporting companies — Equifax, Experian, and TransUnion — to provide you with a free copy of your credit report, at your request, once every 12 months. You are also entitled to a free credit report under certain circumstances, such as when you are denied credit because of something in your credit report. You can order three free credit reports each year, but you don’t have to order all three at the same time. If you order one from each of the three credit bureaus every four months, you can stay more current on what’s in your credit accounts, without having to buy a service. If you are married, you can double up by ordering a report for you and for your spouse – that’s six free credit reports per year – enough to order one every other month.

A debtor who has received a discharge may voluntarily repay any discharged debt. A governmental unit or private employer may not discriminate against a person solely because the person was a debtor, was insolvent before or during the case, or has not paid a debt that was discharged in the case. If a creditor attempts collection efforts on a discharged debt, the debtor can file a motion with the court, reporting the action and asking that the case be reopened to address the matter. The bankruptcy court will often do so to ensure that the discharge is not violated.

A governmental unit or private employer may not discriminate against a person solely because the person was a debtor, was insolvent before or during the case, or has not paid a debt that was discharged in the case. In chapter 7 cases, the debtor does not have an absolute right to a discharge. An objection to the debtor’s discharge may be filed by a creditor, by the trustee in the case, or by the United States trustee. Creditors receive a notice shortly after the case is filed that sets forth much important information, including the deadline for objecting to the discharge.

Under the federal bankruptcy statute, a discharge is a release of the debtor from personal liability for certain specified types of debts. In other words, the debtor is no longer required by law to pay any debts that are discharged. Not all debts are discharged. The debts discharged vary under each chapter of the Bankruptcy Code.

From an individual debtor’s standpoint, a primary goal of filing a bankruptcy case is to obtain relief from burdensome debt. Relief is attained through the bankruptcy discharge, the purpose of which is to provide a “fresh start” to the honest debtor. The bankruptcy discharge varies depending on the type of case a debtor files: chapter 7, 11, 12, or 13.

A fundamental goal of the federal bankruptcy laws enacted by Congress is to give debtors a financial “fresh start” from burdensome debts. There is a federal bankruptcy court for each judicial district in the country. Much of the bankruptcy process is administrative, however, and is conducted away from the courthouse. Usually, the only formal proceeding at which a debtor must appear is the meeting of creditors, which is usually held at the offices of the United States trustee.