You’ve hit rock bottom. You probably have very little to your name and the road to financial recovery is looking uphill. Life after bankruptcy is one full of challenges and turmoil, but it is your decision to sink or swim. The following details some things that one can expect after filing for bankruptcy.
Dependent on the type of bankruptcy you filed, your options may differ. A Chapter 13 means that the court will oversee your financial recovery. They will take a portion of your paycheck to pay off some of your debt. A Chapter 7 means that you will be absolved of most of your debts and that the court will not garnish your wages to pay off your debt.
Although a Chapter 7 allows you to walk away mostly free and clear, the repercussion can be seen on your credit. People who file Chapter 13 are much more likely to recover financially and build their credit back up in less time than those who file a Chapter 7. Of course, the bankruptcy will still be reflected on their record.
So what happens then? What should you do after you’ve filed bankruptcy? First, understand that you will no longer have access to any lines of credit. No credit cards, no loans, nothing; this means strictly dealing in cold hard cash. Save up for those rainy days because you won’t be able to use credit to pay forward unexpected fees and accidents.
This may mean having to live a simpler lifestyle, but hopefully you’ve come to terms with meagerness. Many people who find themselves in financial chaos arrived there because they lived a life that was too extravagant for what they were making.
Are you struggling to overcome your debt? Have you built it up to the point where it is not feasible to pay it off? Blick Law Firm specializes in Bankruptcy cases. We can assist you and counsel you with your bankruptcy. Furthermore, we offer alternatives to bankruptcy and refer clients who aren’t terribly off to credit rehab programs.
To find out more about our bankruptcy services and how we can assist you or anyone else, please visit our website.