Bankruptcy can have a drastic impact on a person’s life – for the better!
Nobody wants to file bankruptcy. Nobody looks forward to having to file bankruptcy. It is a serious and difficult financial decision. However, it can be a decision that frees a person from debilitating debt and long-term financial struggles. In many ways, bankruptcy can give a person their life back.
We assure you, there is life after bankruptcy. So your bankruptcy case is over – here are a few things you need to know:
The Bankruptcy Discharge
The Bankruptcy Discharge Order releases you from personal liability on certain debts. You are no longer legally required to pay back any debts that are part of your bankruptcy discharge. Further, the creditors of discharged debts can never legally attempt to collect payment on those debts.
Debts You Still Owe
Make sure you understand which of your debts were discharged in your bankruptcy, and which debts if any you are still obligated to pay back. Generally, credit card and medical debts are discharged. Nondischargeable debts include student loans, recent tax debts, back child or spousal support payments, and some other types of debts.
Check Your Credit Report Early & Often
Truthfully, everyone should be monitoring their credit reports. It is not uncommon for information to be misreported. Also, monitoring your credit report is a way to detect fraud and identity theft.
Check your credit report and make sure your accounts are properly reported as discharged in bankruptcy. Otherwise, your accounts may still be reporting a balance due, which adversely affects your credit score. The information contained in your credit report dictates your credit score, and your credit score determines your credit-worthiness. To ensure that your credit score is as high as possible, make sure that the information on your credit report is accurate. Learn more in our article Order A Free Credit Report.
Increasing Your Credit Score After Bankruptcy
Many people are surprised to discover that their credit score begins to rebound shortly after bankruptcy. Plus, there are actions you can take to help increase your score more quickly.
- As noted above, make sure the information reported on your credit report is accurate.
- Make all payments on time – late payments are damaging.
- Installment loans, such as a car loan or mortgage, help increase your score.
- Opening a credit card and paying the bill off in full every month will help increase your score.
Life After Bankruptcy
Bankruptcy has given you a fresh financial start. We encourage you to take full advantage of it. This is your chance to get your financial life in order. Avoid frivolous spending. Make wise financial decisions.
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At the Law Office of Barbara B. Braziel we file hundreds of Chapter 7 and 13 bankruptcy cases every year. But our clients are never just a number. You will not be left in the hands of a paralegal. You will have access to your attorney throughout your bankruptcy case.
We are a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code.