Once a bankruptcy is finally dealt with, many people would rather not dwell on it any longer. However, you still want to have your bankruptcy documents within easy reach. Going bankrupt does not foreclose the possibility that a Florida financial lender will grant you a loan if you are looking for one, and in fact, bankruptcy paperwork can even help you get approved by answering questions a lender may have about your financial past.
When you approach a lender to buy a mortgage, you will need a number of financial documents to show your current level of income, your assets, your debts and perhaps your tax returns. However, as Bankrate.com explains, if you have a bankruptcy in your recent history, your mortgage lender might also ask you for your bankruptcy discharge paperwork. Your lender may want proof that you have settled with your creditors, alleviating any fears that you still have creditors on your case.
Some people may want to finance a new small business. Per U.S. News and World Report, a lender could require you to produce a copy of your bankruptcy petition or your bankruptcy filing notice from your bankruptcy court. Depending on the kind of loan you seek, your lender will want to understand certain aspects of your bankruptcy, which may help persuade the lender to approve your loan if the lender believes you handled the bankruptcy well. In addition to producing the documents, it is important to be ready to explain whatever your lender wants to know about the bankruptcy.
Bankruptcy documents not only show lenders that you have settled your debts, but they can be used to prove to any of your past creditors that you have dealt with your past debts with them. Sometimes a person at a company may find an old record of an outstanding bill, not knowing that the issue was settled in bankruptcy, and send a notice looking for the money. When that happens, the person being billed can produce a copy of the bankruptcy paperwork showing that the bill was settled.