Life After A Bankruptcy Discharge
If you have recently sought bankruptcy protection, you might be wondering, what now? Or maybe you are considering filing for bankruptcy and wonder what happens after your debts are discharged.
Well, in short you will be left with the responsibility of cleaning up your past and preparing your future.
Your Debts A bankruptcy discharge is the result of a successful case, in which your debts have been successfully eliminated through Chapter 7 or repaid through Chapter 13.
In either case, the discharge marks the closing of your case.
After a debt discharge, all of your creditors will be given notification that your debts have been satisfied according to the court and will be required to remove you from future liability over the debts.
Your debt balance will be erased and your account will be considered "satisfied", no longer reflecting a delinquent status.
Once your debts have been discharged, creditors may not attempt to collect on the debt, or remaining balance, at any point in the future.
Your Credit Most people fear bankruptcy because they feel their credit will be damaged by the process.
The truth is, your credit has already taken a huge hit by the time you are even eligible to file for bankruptcy.
Missing payments and delinquent account standings does the most damage to your credit.
Most people find that their credit improves after bankruptcy as they no longer have large outstanding balances with a negative account standing.
In fact, bankruptcy provides many people a clean slate to start over.
Once your debts have been discharged you are in a unique position to begin rebuilding your credit right away.
It is true that a bankruptcy will be noted on your credit history, but many people find that their credit standing improves after the delinquent account balances have been satisfied.
After a few months of responsible payments on new lines of credit, many people can quickly boost their credit rating to levels higher than they have seen in years.
Your Financial Future A bankruptcy provides you a great opportunity to take charge of your financial future.
One of the requirements of the bankruptcy process is that you complete a debtor education course.
This course teaches smart money management skills, how to use credit responsibly and ways to keep yourself out of debt.
Armed with all of the knowledge from this course, you can easily take charge of your finances and begin new habits that lead to a debt-free future.
Well, in short you will be left with the responsibility of cleaning up your past and preparing your future.
Your Debts A bankruptcy discharge is the result of a successful case, in which your debts have been successfully eliminated through Chapter 7 or repaid through Chapter 13.
In either case, the discharge marks the closing of your case.
After a debt discharge, all of your creditors will be given notification that your debts have been satisfied according to the court and will be required to remove you from future liability over the debts.
Your debt balance will be erased and your account will be considered "satisfied", no longer reflecting a delinquent status.
Once your debts have been discharged, creditors may not attempt to collect on the debt, or remaining balance, at any point in the future.
Your Credit Most people fear bankruptcy because they feel their credit will be damaged by the process.
The truth is, your credit has already taken a huge hit by the time you are even eligible to file for bankruptcy.
Missing payments and delinquent account standings does the most damage to your credit.
Most people find that their credit improves after bankruptcy as they no longer have large outstanding balances with a negative account standing.
In fact, bankruptcy provides many people a clean slate to start over.
Once your debts have been discharged you are in a unique position to begin rebuilding your credit right away.
It is true that a bankruptcy will be noted on your credit history, but many people find that their credit standing improves after the delinquent account balances have been satisfied.
After a few months of responsible payments on new lines of credit, many people can quickly boost their credit rating to levels higher than they have seen in years.
Your Financial Future A bankruptcy provides you a great opportunity to take charge of your financial future.
One of the requirements of the bankruptcy process is that you complete a debtor education course.
This course teaches smart money management skills, how to use credit responsibly and ways to keep yourself out of debt.
Armed with all of the knowledge from this course, you can easily take charge of your finances and begin new habits that lead to a debt-free future.
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