What to Expect After Your Bankruptcy Discharge

Here on this website we talk a great deal about what will happen during the bankruptcy process. Yet we have observed many of our clients have some anxiety about what happens after the case is done.

So we thought we’d take a few minutes to discuss what comes next, as well as what your next steps should be.

Your phone will be silent.

Your phone should have been silent throughout the entire bankruptcy process, as collection agencies would have been prevented from calling you during the automatic stay. Yet you shouldn’t get any new collection calls after the bankruptcy process is complete, either.

This should mean that your home life is now calmer and more managable, without forcing you to live with all the anxiety that financial problems can cause. Say goodbye to the way your heartbeat goes up every time the phone rings…and say goodbye to the number of calls on your phone marked “Unknown” or “Scam.” 

You’ll start getting offers. 

One of the most surprising aftereffects of bankruptcy that you’ll encounter is the way that you start getting offers from all sorts of credit companies. Car companies and credit card companies are usually the quickest to start trying to solicit your business.

Be really careful about accepting these offers. You do want to rebuild your credit after bankruptcy, and you’ll probably want to open a small secured credit card to do it.

The offers you’re getting won’t be small or conservative. They’ll be high-interest rate offers with high annual fees, and you’ll be getting them because these companies know it will be years before you can seek bankruptcy protection again. They’ll make their money off you long before that happens. 

You may still owe some debts.

There are debts bankruptcy can’t discharged.

These are most federal student loans, any debts you forgot to include in your court filing, spousal support, child support, restitution from crimes you may have committed, government fines and penalties, some retirement plan loans, and some condo or co-op housing fees.

It’s very important that you understand what you still owe, and to whom, and that you make a plan for getting those specific debts handled.

You’ll see changes to your credit history.

Most of our clients are surprised to find their credit score goes up after their bankruptcy discharge, despite the presence of the bankruptcy filing on their credit report.

This is because of the way that credit scoring works. Your total debt load has gone down. Your debt-to-income ratio has gone down. You don’t have dozens of past due collection accounts littering up your credit report anymore. 

If you are careful and conservative you can even get all the way up to a 750+ credit score within a two year time period.

Need help getting out from under your debt? Contact our offices today.

You can’t realize any of these benefits until you start and complete your bankruptcy case. Contact Haysom Law to set up a free consultation today.

See also:

Are You Languishing in the Pre-Bankruptcy Sweat Box?

Can Bankruptcy Help With Back Taxes?

What Do You Need to Bring to Your Bankruptcy Consultation?


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