What happens after filing bankruptcy?
After your case has ended, you may receive a discharge of a majority of debts. In addition, all your creditors will be legally prevented from collecting their outstanding amount from you.
However, unfortunately, you might not be entirely debt free. This legal proceeding doesn’t discharge all the debts.
The nature of discharged debts will depend on your case. But the following debts won’t be discharged in any case.
- Some tax debts
- Student loans
- Alimony obligations
- Child support
- Debts related to criminal fines
After you have successfully achieved bankruptcy, you may see its impact on your credit score. The filing may appear on the credit report and might also be present on different public records.
Additionally, the Chapter 7 Bankruptcy stays a part of your credit for 10 years. On the other hand, the Chapter 13 Bankruptcy stays for almost seven years.
However, the impact of bankruptcy on your credit score will mostly depend on your financial condition before you filed a case. But before you start panicking, there are many ways in which you can improve your score.
- By paying all your bills on time you can easily rebuild your credit status.
- If you want to start again, shifting to another credit card will help you in this regard.
- Your new habits can change the score quite easily. If you want to spend, ensure not to borrow more than what you can currently repay. A balance in your expenses and income is imperative to improve your credit position.
Interestingly, filing for bankruptcy can do better to your credit score than harming it. Holding debt and delaying payments can have a huge impact on your credibility, that you may fail to change in many years.
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What happens after filing bankruptcy?
After your case has ended, you may receive a discharge of a majority of debts. In addition, all your creditors will be legally prevented from collecting their outstanding amount from you.
However, unfortunately, you might not be entirely debt free. This legal proceeding doesn’t discharge all the debts.
The nature of discharged debts will depend on your case. But the following debts won’t be discharged in any case.
- Some tax debts
- Student loans
- Alimony obligations
- Child support
- Debts related to criminal fines
After you have successfully achieved bankruptcy, you may see its impact on your credit score. The filing may appear on the credit report and might also be present on different public records.
Additionally, the Chapter 7 Bankruptcy stays a part of your credit for 10 years. On the other hand, the Chapter 13 Bankruptcy stays for almost seven years.
However, the impact of bankruptcy on your credit score will mostly depend on your financial condition before you filed a case. But before you start panicking, there are many ways in which you can improve your score.
- By paying all your bills on time you can easily rebuild your credit status.
- If you want to start again, shifting to another credit card will help you in this regard.
- Your new habits can change the score quite easily. If you want to spend, ensure not to borrow more than what you can currently repay. A balance in your expenses and income is imperative to improve your credit position.
Interestingly, filing for bankruptcy can do better to your credit score than harming it. Holding debt and delaying payments can have a huge impact on your credibility, that you may fail to change in many years.