Bankruptcy Attorney | What Happens After Bankruptcy
Bankruptcy Attorney . It is only natural that you have questions about a financial decision as big as bankruptcy. The decision you make to file could be one of the biggest you make in your life, and it can provide some serious financial relief.
Still, there are some things you should be aware of before you make the choice or talk with a bankruptcy attorney. Knowing what happens after bankruptcy can make the decision easier.
1. You will need to complete Credit Counseling.
Before you can even file for bankruptcy, you will be required to complete Pre-Filing Credit Counseling online or by phone. The interactive counseling session will ask questions about your income and deductions, expenses, debts owed, assets and property.
2. You will also take a Debtor Education Course.
Few people realize that in order for the court to discharge your debts, you need to attend a two-hour course online or by phone. This course is designed to help you understand the ramifications of bankruptcy, as well as to create an effective plan that will help you settle into life without getting back into debt.
3. Some debts will not be discharged.
While many of your debts are discharged post-bankruptcy, there are a few debts that you are still expected to pay. These include student loans, some tax debt, alimony, child support, personal injury orders, and any funds related to criminal activity.
If you have debts that are not discharged, it is time to set up a payment plan. It will only hurt your credit score more if you allow these bills to become delinquent.
4. Some creditors may still try to collect.
This is why you need to keep your paperwork on hand, even after you have filed. You may need to send them copies of the documents to show that you are no longer obligated to pay the debt. After this, you can report creditors for harassing you. If the phone calls don’t stop, it may be time to file an order against the company.
5. You need to rebuild credit.
Rebuilding your credit is easier said than done, but it is important to take this step if you plan on renting an apartment, buying a home, or taking out a loan for a new car anytime in the future. Certain credit cards are specifically designed to help you rebuild.
A secured credit card is often the best option. This type of card is considered a prepaid card because you pay your credit limit ahead of time. The amount you are able to pay increases as the bank’s trust with you grows, and your credit score improves accordingly. For best results, try not to use more than 20% of your limit at one time.
It is also a good idea to get a copy of your credit report in the months following your bankruptcy. This allows you to confirm that the appropriate debts have been charged off.
6. Understand how long bankruptcy stays on your record.
Generally, Chapter 7 bankruptcy stays on your record for 10 years after you file. Chapter 13 bankruptcy stays put for 7 years. Fortunately, you will see improvements as you work to rebuild your credit, even before this time period has passed.
7. You need a budget.
Now that your debts are discharged, it is time to take a look at the reasons why you filed for bankruptcy with a bankruptcy attorney, in the first place. If money management was a problem for you, establishing a solid budget that is realistic for your income is essential. This ensures that you don’t find yourself in the same position years down the road.
It is also a good idea to create a savings account so that you can plan for the future. If you do run into a situation where you are unable to keep up with bills, you will have some padding to get you by. -startfreshtoday
Need a bankruptcy attorney that you guide you through the process from start to finish? Contact the experts at Pinkston & Pinkston.