After my bankruptcy requirements are completed, what happens?
When you complete all your duties in bankruptcy, you will obtain a type of discharge, which is the official certification of how it was completed.
Your personal bankruptcy will be a permanent part of your life history. When asked if you have been bankrupt, you must always answer “yes”. To do otherwise would be fraud.
A record of your bankruptcy will remain on your credit report (from the credit bureaus) for several years after your discharge.
Apart from the note of your past bankruptcy, your credit status will be clear. It will be as if you had never had credit. Like a young adult starting independent life, you will have to earn the trust of creditors from the ground up.
Financial life after bankruptcy – can I get credit again?
After bankruptcy, it will probably take three to five years for you to get access to new credit again. Your best strategy during this period is to manage your financial affairs wisely. Build the strongest position you can, by earning a steady income and living within your means.
If you were able to keep your house and your mortgage payments are up-to-date, you can probably renew your mortgage without difficulty at any time after bankruptcy. Continuing the mortgage and keeping the payments current will make a valuable contribution to building a good credit rating again.
Similarly, if you want a new secured loan, for a car or house, the lender will be mostly interested in your having a steady income to support the payments, and the security you can offer.
Even while the bankruptcy still shows on your credit report, you can start to get unsecured credit again, if you follow a careful process to gradually and deliberately repair your credit.
Of course, you should make sure that you understand your credit report, and take any needed steps to get it updated and correct.
Feelings and thoughts after your bankruptcy
After you complete your bankruptcy, the burden of debts you can’t pay will be wiped out. Most people experience a great feeling of relief at finally achieving that fresh financial start they needed so much.
The lessons you have learned will be valuable for your future success. You must know that the ways you handled money need to be changed. And the credit counselling you received during bankruptcy will have given you new abilities to do better with money. Whether you actually do so is now up to you. Will you follow the help and good advice you have received?
Not been bankrupt yet?
If you have not yet filed for bankruptcy as a solution to your difficulties, reading this page was wise. We advise everyone with money problems to research personal bankruptcy and bankruptcy alternatives, so as to make the best possible decision. This site is intended to answer all your bankruptcy questions. If you still have a personal question, or wish to have a free, confidential consultation, please contact a bankruptcy trustee near you.