Understanding The Bankruptcy Process

If you are still trying to decide if you should go through with Chapter 7 bankruptcy, it is important not only to view how it will help your financial state but also to see how it will affect your life afterward. Here are four things you should expect after filing for Chapter 7 bankruptcy.

Creditor harassment will end

People who file bankruptcy often do so because they have major amounts of debt they cannot pay and their creditors are on their backs trying to collect this money. What this results in is creditor harassment, and living with this every day is very exhausting and frustrating. If you choose to file for bankruptcy, this will all end. Your creditors will no longer have the right to harass you in any way. In fact, under bankruptcy law, they will no longer have the right to contact you at all, which means the harassment would be impossible to continue.

You will have more cash and fewer debts

The second thing you should expect after Chapter 7 bankruptcy is to have more cash in your hands and have fewer debts to pay. Chapter 7 offers a discharge of qualifying debts, which means you will no longer owe any money that the court discharges. This should free up your budget, leaving you with more money to use for your regular expenses.

Your credit will suffer, but this is not permanent

The third effect of bankruptcy involves your credit. While it is true that your credit will take a hard hit from filing for bankruptcy, you should realize that this effect is only temporary. You will have the ability to improve your credit and qualify for credit cards and loans within just a couple of years.

You will have a fresh start

The main thing you should realize about bankruptcy is that it offers a fresh, new start for you. After you file and get through the requirements of bankruptcy, you will have a grasp of your finances in a way that is probably better than you have ever had. This will allow you to start over without owing a lot of money to any creditors.

Life after bankruptcy might be better than you expected it to be, primarily because you can begin again without having to pay back heaps of debts. If you would like more information about this, talk to a local bankruptcy lawyer.