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Life After Bankruptcy


Many people approach bankruptcy with feelings such as dread or fear. They are often afraid life after bankruptcy will leave them out in the cold, with their credit reports ruined and no access to affordable credit anymore.

In fact, we often tell clients that like any other major life transition, a debt discharge is not the end so much as it is a new beginning. There are benefits to anticipate in your life after bankruptcy as well as cautions to consider.

Negatives? A Few, Yes.

There will be a record of your bankruptcy on your credit report for up to 10 years. Some creditors may use your bankruptcy as a reason to deny you credit. And there is no guarantee someone who does a background check on you for any reason in the future will not show you prejudice because of your bankruptcy. Furthermore, some debts cannot be discharged in bankruptcy: back child support, student loans and most taxes, for example.

Positives? Many Clients Say They Outweigh Negatives By Far.

The good news about life after bankruptcy is you will have the opportunity for a fresh start: a chance to start anew with a clean slate. Most people experience great sensations of relief after a bankruptcy discharge is complete. Many say they are able to sleep well for the first time in many months or years. Others express joy and relief over the lifting of a major source of stress and worry.

Reaffirming Debts

Many bankruptcy filers have the opportunity after a bankruptcy is complete to reaffirm debts, including mortgages and car loans. Talk to your bankruptcy law attorney to determine whether this is a smart move in your case.

Credit After Bankruptcy

You are likely to receive offers for new car loans and new credit cards not long after the bankruptcy. You may qualify for a new home mortgage at market interest rates within a year or two. We advise our clients to proceed with caution, however, remembering out-of-control debt was what sent them on the path to bankruptcy.

Keep in mind you will be unable to file for bankruptcy again within eight years. Therefore, you should be careful about the use of credit after bankruptcy.

Our Attorneys Offer Free Consultations

Talk to a California lawyer about Chapter 7 bankruptcy, Chapter 13 bankruptcy, debt liquidation (discharge) and other debt-related matters. Call Bird & Van Dyke in Stockton at 888-915-0422. You can also use our online contact form. Debt relief attorneys await your inquiry.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.