Bankruptcy notices to creditors.

Question

When bankruptcy is final do you send a letter of discharge to all three reporting credit bureaus or just one? Do they need a copy of the final decree from the trustee about the debts that were reaffirmed?

Answer

The bankruptcy notice to creditors is handled by the bankruptcy court staff. The bankruptcy court sends a notice of bankruptcy filing to each of the debtor's creditors. This is why it is very important that the debtor ensure that all of his/ her creditors are listed in the petition. The credit bureaus are not sent a notice. The credit bureaus use a data system to track all bankruputcy filings.

The trustee does not file any paperwork regarding reaffirmation agreements. Reaffirmation agreements are filed with the court and are subject to court approval. Once filed and approved by the court, the creditor can begin accepting payments on the debt from the debtor.  Reaffirmation agreements in MN are typically filed only on mortgages and auto loans, so that they debtor may continue payments and retain the collateral.