Are you buried in debt? Do you wonder if Chapter 7 bankruptcy is the right choice? What will your life be like after filing?
It's common for those who are contemplating filing bankruptcy to wonder how it will affect their lives afterwards. Chapter 7 bankruptcy can give you a fresh financial start by wiping out debts such as credit cards. However, it will also stay on your credit report for a decade.
There are ways to improve your credit score after filing for Chapter 7, though. One of the best ways is to get a secured credit card. You deposit money into an account that is used as collateral for the card. Each month, you should pay the balance off in full. It's best to simply put one of your recurring purchases on the card each month. A cellphone bill is a good choice.
You should get used to paying in cash, as this will help keep you from overextending yourself financially. As you continue to build your credit score up with your secured card, you may find you are eligible for an unsecured credit card within a year or two. While this may seem like a long time, it really isn't in the overall scheme of things.
You can't discharge all of your debts during bankruptcy, though. For example, student loans and child support cannot be charged off. These will be bills you will need to continue to pay on.
While bankruptcy is not the answer for everyone, it may be the right choice for you. An experienced attorney can provide you with more information on bankruptcy and whether it is in your best interests.
Source: Yahoo Finance, "Life after Chapter 7 bankruptcy," accessed July 13, 2017