Before you file for Chapter 7 or 13 bankruptcy, you may begin to wonder what your life will be like after your bankruptcy plan takes effect. What’s your financial outlook? Will you have enough money to cover your basic living expenses? How will the bankruptcy affect your credit score? Will you ever be able to buy a house again? These are all natural questions and concerns. Let’s take a look at how a bankruptcy plan typically affects someone’s life, so you can picture it more clearly.
How Will My Life Change After Bankruptcy?
The first thing you’ll notice is that the collection calls stop. Creditors are required to stop contacting you as soon as a bankruptcy case is filed. Because bankruptcy gives you a fresh financial start, you’ll also notice that for the first time in a long while, you’re actually able to pay your monthly expenses without getting overwhelmed.
A bankruptcy deals with your debt and leaves you with something more manageable to handle. This will probably make you feel less stressed, more capable of managing your finances, and more optimistic about your financial future.
Will Anyone Know That I Went Through a Bankruptcy?
This is a great question bankruptcy attorneys hear frequently: Will my friends/family know I declared bankruptcy? In most cases, no. However, bankruptcy filings are a matter of public record. The days of newspapers printing bankruptcy filing information are largely gone. So beyond your creditors, bankruptcy lawyers, and the court officials, few people will know about your bankruptcy unless you tell them.
The only exceptions would be people who have given you loans, people who have sued you, or an employer if you had a financial issue like a garnishment. But even if these people find out, it’s against the law to discriminate against you due to bankruptcy. It’s not something to be embarrassed about. It’s a positive step toward financial stability.
Will the Bankruptcy Ruin My Credit Forever?
Bankruptcy doesn’t ruin your credit in the long run. Actually, in many cases it actually improves your credit score. That’s why people who have completed bankruptcy plans often find a steady stream of new credit offers in their mailboxes. Bankruptcy wipes the slate clean so you can start over and make new choices.
Nearly 780,000 people in the U.S. filed for bankruptcy last year to get a fresh start and improve their credit. If you’re wondering about the timeframe, it typically takes somewhere between 3-4 months from filing to discharge for a Chapter 7 bankruptcy and 3-5 years for Chapter 13. After the bankruptcy, your credit score should begin to rise.
Will I Ever Be Able to Buy a House or Car Again?
There aren’t any laws that prevent you from buying a house or car after bankruptcy. In fact, after bankruptcy your credit score will improve and your debt to income ratio will look much better to the credit bureaus. That’s good news for getting a mortgage or car loan. Some government programs and private lenders do require waiting periods after a bankruptcy.
However, the lending market is very competitive, and you’ll likely be able to find a lender that will work with you after a bankruptcy. Remember, by choosing bankruptcy you are taking a responsible step toward better management of your finances. That’s a good thing for your credit, and a good thing for your future.
Sawin & Shea – Indianapolis Bankruptcy Attorneys
Filing for bankruptcy is not the end. It’s the beginning of a new financial life for you. The Indiana bankruptcy attorneys at Sawin & Shea can help you get rid of the overwhelming debt and advise you on life after bankruptcy. We are here for you during this life-changing process. Please do not hesitate to call us today at 317-759-1483 or send an email for a free consultation. We are ready to help.
Sawin & Shea – Indianapolis Bankruptcy Attorneys
Filing for bankruptcy is not the end. It’s the beginning of a new financial life for you. The Indiana bankruptcy attorneys at Sawin & Shea can help you get rid of the overwhelming debt and advise you on life after bankruptcy. We are here for you during this life-changing process. Please do not hesitate to call us today at 317-759-1483 or send an email for a free consultation. We are ready to help.
Video Transcript
One question that my clients generally have during the bankruptcy process is what’s life going to be like after bankruptcy? Bankruptcy gives you a fresh start. It helps you build a platform where you can start making your financial life better away from all the stress of collection calls, harassment and lawsuits. It’s a way you can start getting back on track with your financial life, so you can get things like mortgages and car loans at better interest rates on the future. Please give us a call today at 317-759-1483. We offer a free consultation. if you’re having problems with your debts. We can help you get back on track.
