What Happens After Bankruptcy

Uncertainty is no fun, especially when it’s your financial future. Peer into the crystal ball to set your mind at ease.
When you file for bankruptcy, it’s usually because there’s no better option for you to get your finances under control. Your credit’s shot, your phone’s ringing off the hook and the mail is piling up.
You sit down with your bankruptcy attorney and plot out a course for completing the process. But the end of the case is the beginning of a new chapter in your life.
Here’s how it plays out.
Enjoy The Silence
One thing you may have noticed once you filed for bankruptcy was that the phone stopped ringing with collection calls. The mailbox was no longer jammed with unwanted letters demanding payment.
After bankruptcy, that trend continues. Enjoy the silence – you earned it.
If, however, someone calls or writes about a debt that was wiped out in your bankruptcy case then you need to get on the phone with your attorneys immediately.  Any contact by a creditor or debt collector about a bill that was discharged in your bankruptcy case is against the law.
Mop Up The Remaining Debt
After bankruptcy, some of your debts may still remain enforceable. Things like student loans, some taxes, and domestic support orders may remain outstanding. If there’s a bill you need to take care of, by all means so do as soon as possible.
You’re going to want to sit down with your bankruptcy lawyer to be sure of which of those debts are yours to handle after discharge, just in case you forget something that could be important.
Check Your Credit Reports
It’s frustrating to go through your bankruptcy only to realize months or even years later that some of the discharged debts are still being reporting as outstanding. Lots of my clients have this problem, and it’s one of the reasons why I go through every credit report with my clients after the case is completed.
Checking your credit reports is easy, free once a year under federal law, and can save you a ton of hassle later on.
Rebuild Your Savings
The best way to avoid getting back into debt is by keeping a rainy day fund.  Now’s a great time to start working on yours.
You may not be able to put a ton of money into your savings account each month, but even a few dollars goes a long way over a few years.
Remember, none of this is going to change your world overnight. But if you start now, things will be better in the future than they are the day after bankruptcy.
Image credit:  Mathieu Struck
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