You are in the process of filing for your personal bankruptcy, and you worry about what happens after. Whether you are due to receive a Chapter 7 discharge of your debts or a debt restructuring through Chapter 13, you are bound to have some questions. Like many other Louisiana residents, the thought of bankruptcy might have filled you with misgivings.
This could be due in large part to the stigmas that still surround bankruptcy, despite it being more common today than in past decades. Most people believe bankruptcy should be a last-resort option, and that it destroys your credit for life. Some might even tell you that you are being irresponsible by filing for bankruptcy instead of repaying your debts.
As NerdWallet explains, you are neither running from your duties or going to destroy your credit by resorting to bankruptcy. As a legal method of getting help for financial circumstances that are out of your control, bankruptcy gives you a chance to get back on your feet and be more financially stable in the future. However, there are some things that you should know about life after bankruptcy, such as the following:
- Your credit will take a hit, as a bankruptcy will remain on your credit report for seven to 10 years.
- You won’t be able to file for Chapter 7 again for another eight years.
- After your bankruptcy discharge, you can begin rebuilding your credit immediately.
- If you make wise financial decisions moving forward, you may be able to get a major loan, such as a home or car loan, within a couple years of your bankruptcy.
- You may be vulnerable to predatory lenders, who often target people who are recovering from a bankruptcy.
The months and years after your bankruptcy offer you a chance to start over and work toward the credit report you’ve always wanted. However, you will need to be smart about your financial decisions once your discharge is complete.
Disclaimer – Attorney Advertising. Under Federal Law, we have been designated a Debt Relief Agency and we help people file for bankruptcy relief under the Bankruptcy Code. This information is not intended as legal advice and no attorney-client relationship is created. Results may vary. Results not guaranteed. Dramatization – not actual clients in pictures and videos. Thomas C. McBride, attorney in Alexandria, LA