Taking care of your finances after receiving your bankruptcy discharge is extremely important.  The bankruptcy law requires that you complete a financial management course prior to your discharge which teaches basic management techniques.  While this course is helpful, the first step in managing your finances after your bankruptcy is to identify any post-discharge debts. 

First, what personal debt survived your bankruptcy case?  Post-discharge personal debt generally falls into one of three categories: (1) debt automatically excepted from discharge; (2) debt excepted from discharge by court order; and (3) post-petition debts.  Debts automatically excepted from discharge include student loans, most taxes, and child support obligations.  Debts excepted from discharge by court order include debts involving fraud or other bad conduct.  Post-petition debts are debts that first arise after the day you file your bankruptcy case.  Post-petition debts are not included in your bankruptcy case and are not discharged. 

Second, do you have property debt that survived the bankruptcy?  In certain cases the personal obligation to pay a debt may be discharged, but the property lien survives.  Although you owe nothing to the creditor, items secured by a property lien may be repossessed.  Consult with your attorney and determine what, if any, property may be at risk of repossession after your bankruptcy. 

Finally, did you agree to any new financial obligation during your bankruptcy case?  Be clear about any new or changed financial obligation that you agreed to during your bankruptcy case.  If you executed a reaffirmation agreement, redemption loan, or modification, make sure you understand the terms and obligations contained in that agreement. 

You and your attorney should discuss the impact of your bankruptcy discharge on your debts.  Be certain that you understand which obligations are discharged and which survive the bankruptcy case.  Your bankruptcy attorney is happy to discuss your options for managing any debt that survives the bankruptcy discharge.

If you are currently in bankruptcy OR if you are just thinking about filing for bankruptcy relief, and are worried that you may have liens on your property, go to your local property room and do a check to see if any Judgment Liens are recorded.  More than likely, these Judgment Liens are going to be recorded in the “Miscellaneous Book” and will have a stamped book and page number, just like your recorded mortgage and deed.   

 You are probably asking yourself this question: “What if they aren’t recorded?  How can I find out if I’ve ever had a Judgment entered against me?”  Well, I have an answer for you!  Go to the county courthouse in which your property is located and do a search for Judgments against you.  Don’t forget to provide the Clerk with any other name you may have been known by in the past or nicknames you may use.  The clerk will then run a report and will be able to determine if any Judgment have been entered against you.  If there are Judgments, have that clerk print out a copy of these Judgments and bring them to your attorney’s office.  It can then be determined if the Judgment Lien can be avoided and ensure that the Lien is removed once your bankruptcy is discharged.    

 You would be surprised the amount of people that have Liens against their property and never realize it.  When they do discover those liens, it’s too late and it causes additional time, stress and more importantly…more money to have them removed and paid off. 

Remember…Judgment Liens don’t have to be recorded, so if you have ever had any kind of Judgment entered against you, that Judgment becomes on automatic lien on your property.  This is especially important to check out for clients already in bankruptcy and even more important for those thinking about filing.  Do your research and check everything out.  For those of you that have already filed, don’t worry.  The Judgment Liens can be added to your bankruptcy and taken care of in your case.