Three Things You can Expect After Filing For Bankruptcy

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You can find a bunch of information on the internet about filing for bankruptcy, but what happens afterwards?

Here are three things that you can expect:

  • Debts are discharged - For consumers, the best part of filing for bankruptcy is the elimination of your debt without giving anything up.  The Bankruptcy Trustee may try to take your property to pay back your creditors, but a skilled bankruptcy lawyer can help you keep it without losing anything.

  • Creditor Go Away, Don't Come Back Any Day: There are several types of bankruptcy for consumers and they all offer an automatic stay, which immediaty stops any attempts to collect. This is true for civil judgments that may have already entered bu also for phone calls and collection letters, wage garnishments, repossessions and most kinds of court actions.

  • A Fresh Start: IMost people believe that filing for bankruptcy will have an effect on their credit score. The Credit Score is the great marketing gimmick of the credit industry and it does not matter much. Many consumers can rebuild their credit immediately, but the secret is to avoid getting back into debt.  Planning for the future is more important than having that shiny new thing. It is more important to have only a few current credit accounts that can rebuild your credit.

A study by the Federal Reserve found that when dealing with debt, it was better to file bankruptcy than struggle monthly to pay off debt.