Life After Bankruptcy

Effects of bankruptcy on Life

  1. An individual who gets a fresh start has to start with new challenges.
  2. Credit Reports carries the bankruptcy for ten years in case of chapter 7 bankruptcy and for six to seven years in case of Chapter 13 bankruptcy.
  3. Creditors look at an individual as a bad risk for the court has written off one's previous debts.
  4. Even if you do get a credit, it will be with much higher interest rates and fees.
  5. In chapter 13 bankruptcy some specific amount is left for the individual to live on and the creditors get the rest of the share on monthly basis through the trustee.
  6. Bankruptcy also makes you change the way of living. One has to compromise on one's lifestyle and spend less on certain accommodates.
  7. Also there are restrictions on getting a new credit card or a car loan. For this you will have to take the permission of the court.
  8. Some creditors take chapter 7 filers as worse risk than chapter 13 filers which means high interest rates and fees.
  9. One who has filed chapter 13 bankruptcy and having kids in private school, the court may ask to shift them to a public school.
  10. In some way or the other it may affect one at work. Though not legal, but an employer might pull other person up than the bankrupt.

Tips of living after bankruptcy

  1. Its always a plus point to be a model citizen after the discharge of bankruptcy to show others that you have learnt from the past.
  2. Make the payments on time.
  3. Start a saving account for emergency. When you have certain amount of money in your account the creditors are at ease to lend you same amount of money.
  4. If you posses a credit card after bankruptcy use it to the minimal extent which can paid off.
  5. If one doesn't posses a credit card he/she can apply and get a secure card. After getting a secured card if one can hold it right for one year, he finds himself with offers for some unsecured cards too.
  6. Keep your credit record after bankruptcy clean as you are judged for the next two years bills on the same.
  7. One should always put less than 100 words reason for filing bankruptcy but only when cases like sick child, divorce are the case. This can help one if not on credit reports then in judgmental decisions such as promotion at work and likewise.
  8. Time is the best solution to heal the wound you got through bankruptcy. At the end you will get all that a normal citizen can and you are out of it.

Useful links:
[Mortgage After Bankruptcy] | [Refinancing After Bankruptcy]

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