Life After Bankruptcy: What Happens After My Debts Have Been Discharged?

South Jersey Bankruptcy Attorneys

Making the decision to file for bankruptcy is never easy. Once you’ve made that decision, you may expect the process will go smoothly and you’ll quickly move on with your life.

However, the reality is that even after you’ve received your discharge and your bankruptcy is complete, to give you the greatest possibility of successful debt resolution, there are a number of key issues that will need to be addressed in the weeks and months ahead.

Your life will be considerably different after you’ve filed for bankruptcy. Whether you file for Chapter 7 or Chapter 13, you’re probably going to have certain issues arise following your discharge.

Here are some of the issues my clients frequently have questions about either during the bankruptcy filing process or in the aftermath of completing their bankruptcy:

Obtain and Keep an Eye on Your Credit Report

In any situation where you feel uncertain about your credit and your identity, it’s a good idea to pause and get back to the basics of simply keeping an eye on your credit.

Managing your credit helps ensure that you’re going to be able to get loans when you need them. It’s important that you monitor your credit report regularly to see that all discharged debts have been removed.

Disputing Items on a Credit Report

If any discharged items haven’t been removed from your credit report, a qualified bankruptcy attorney can help you dispute the items and work to resolve any errors.

It’s not always easy to manage this process on your own. That’s why it’s vital for you to consult with a trusted attorney who can help you craft a plan for dealing with bankruptcy and guide you through this critical time in your life.

Changing Information on a Credit Report

Ensuring the accuracy of your credit report is critical, especially after a bankruptcy. Lenders, potential business partners and others rely heavily on this information and make decisions that can seriously impact your life, based in large part on what the information tells them.

Each credit bureau uses unique processes for changing the information on your credit report. If there are any inaccuracies, there are steps you can take to correct them.

Having the correct information on your report should be a top priority, and keep in mind you do not need to go it alone.

Buying a House

Many people think that with bankruptcy they’ll never be able to buy a house again. Fortunately, the truth is absolutely the opposite.

One of the things that people forget is that your credit is actually better after you’ve resolved whatever debt issues you had in the past – because if you have an active bankruptcy, you haven’t been able to pay your debts.

Now, moving forward, you have an opportunity to have a cleaner slate on your credit report and with that, you’ll then have the prospect of buying a home.

Save Some Cash

After bankruptcy, one of the things banks look for is to make sure you’ve saved some money, so you’ll want to have a pool of cash available that you can use as a potential down payment when buying a home.

In addition, you’ll want to make sure the debts you’re still paying, like a car payment, are made on time.

Charge Wisely

Use that secured credit card to help reestablish your credit and then two to three years down the road, after your bankruptcy is over, mortgage underwriters will be more willing to look at you and see you’re a better credit risk now and give you a loan.

Rebuilding Your Credit

With the majority of your debt being discharged, you’ll soon be receiving offers for credit cards in the mail. Be selective and don’t overextend yourself.

In part two of this blog, we take a closer look at rebuilding your credit and provide tips that’ll help you regain your credit rating and avoid future debt problems.

Get Help From an Experienced Bankruptcy Attorney in NJ

Filing for bankruptcy can give you a sense of relief as you look to erase your debts and get things back on track. After you have discharged your debts, however, there may still be some lingering issues that need to be resolved before you can truly move on with your life.

Even if our law office didn’t handle your bankruptcy, we’re happy to help you as you deal with the aftermath of your bankruptcy. We offer a free, face-to-face consultation at our Cherry Hill, NJ office.

Attorney Joel R. Spivack will provide honest answers to your questions and let you know what he can do to make this process go as smoothly as possible. You can reach us by phone at 856-488-1200 or you can also contact us online.

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

We are here to help you.

Is this a New Jersey matter or Philadelphia Region matter?
We are licensed to practice in New Jersey and Pennsylvania.

Attorney Joel R. Spivack is an experienced bankruptcy and residential real estate transactions lawyer in Cherry Hill, New Jersey. Clients come to us for legal services, but what we really provide is peace of mind. For more than 30 years, Attorney Spivack has helped people make wise, informed decisions about bankruptcy filings, debt relief options and residential real estate transactions.
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