Tuesday, October 4, 2016

Is My Bankruptcy Discharge Still Valid If I Move To Another State?

We live in a mobile society, and when you move you have to go through some basics in your new town. You will have to sign up for electricity, find a school for your kids, locate the nearest grocery store, and figure out if your neighbors are trustworthy enough to borrow your tools. Some of these parts of moving to a new place are fun, but some are less enjoyable. And, regardless of the reasons for your move, one thing is for certain and that is that moving is expensive! If you have already encountered burdensome debt, but made the best of it by seeking the protection bankruptcy has to offer, you might be wondering if you will need to notify the local bankruptcy court of your case, or if you will have to file a new one in your new hometown.

The thing about a bankruptcy discharge is that it is global. This means that the debts you had discharged in a case in another state are still considered discharged if you move somewhere new. This is helpful because you will not need to file anything new, at a new court and you will not have to let your previous creditors know that you have moved. Here are some examples of the types of debts that are discharged in bankruptcy, and the discharge is effective regardless of where you live:

         Credit card debt.

         Medical bills.

         Past due EBay and Amazon accounts.

         Auto and home loans that were not reaffirmed.

Moving out of town without financial baggage helps you to start over with your budget, and in your new surroundings. But do keep in mind that the information you have filed bankruptcy will still be on your credit, and that data will follow you from state to state. So if you are in need of a new home loan or are looking to rent an apartment that does a credit check, the fact you have received a bankruptcy discharge out of state will still be visible. This is not fatal to your efforts to find a new place to live, it is simply information you need to be aware of when relocating.

For more information about what the bankruptcy discharge means, call us today or reach us online at www.law-ri.com. We have multiple locations to serve you and can schedule a time to meet at the office most convenient for you.


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