What is the downside of filing for bankruptcy?

Filing bankruptcy can result in some very negative effects on your immediate financial future, damaged credit scores, loss of credit lines, and sometimes even the loss of assets. That being said, bankruptcy is commonly something that most people can recover from.

What type of debt cannot be discharged through bankruptcy?

Some debts that cannot be discharged are child support, spousal support obligations, student loans, judgments for damages resulting from drunk driving accidents, and most unpaid taxes.

What happens if you come into money after bankruptcy?

Whatever money you get after filing for bankruptcy is yours, and doesn't become apart of the bankruptcy estate.

Filing Bankruptcy is Just the First Step in Rebuilding Your Credit!

Stephen Behrends • February 6, 2022

At Behrends, Carusone & Covington, we continue to represent our clients after their case is over, especially to help them rebuild their credit!

Even though a bankruptcy discharge will stay on your credit report for ten years, with active steps to rebuild it and careful use of your credit after your case is closed, you can have a fairly decent credit score in two and a half to three and a half years.

At Behrends, Carusone & Covington, we know how important it is to continue to represent our clients after their case is closed, especially with assistance rebuilding their credit.

Filing bankruptcy is just the first step in rebuilding your credit and getting a fresh start. A partnership with an experienced bankruptcy attorney is an important first step in rebuilding your credit.

It is important to monitor your credit report to make sure that all of your old debts are being properly reported as discharged. We recommend using www.annualcreditreport.com every four months to get one of the three major credit reports. You are entitled to receive a free report from each of these agencies one a year so this way you can check a credit report once every four months.

Report any problems immediately both to us and to the credit reporting agency. And be sure to let us know right away if you get any collection notices.

Active steps that you can take to rebuild your credit also include using programs and services specifically for that purpose. You can get special credit cards that are available even though your credit score is very low. Usually these are secured cards where you make a deposit in a savings account. Then you get a credit card with a limit that is a little less than the amount of the deposit The bank account is blocked so that it is there to secure any amount that you owe.

Sometimes, you can also enroll in programs with the credit reporting agencies to have consistent, on-time payments of utility bills or rent reported on your credit report.

One step to take before filing bankruptcy is to try to open an account with a local credit union. They typically will allow you to remain a member with full privileges even after your bankruptcy is filed. If you have a a line of credit or a credit card with a credit union, you usually are able to keep it active after the case is filed and it can be a great help in rebuilding your credit.

Rebuilding your credit is essential for most of your financial goals like buying a house or replacing your vehicle. Filing bankruptcy is just the first step, but you should make sure that you hire a bankruptcy attorney who will be there to help you after your bankruptcy case is over.

If you'd like more information on rebuilding your credit, check out this post from the Consumer Finance Protection Bureau. All you need to do is copy and paste this link into your web browser:

https://www.consumerfinance.gov/ask-cfpb/how-do-i-get-and-keep-a-good-credit-score-en-318/

What is the downside of filing for bankruptcy?

Filing bankruptcy can result in some very negative effects on your immediate financial future, damaged credit scores, loss of credit lines, and sometimes even the loss of assets. That being said, bankruptcy is commonly something that most people can recover from.
What type of debt cannot be discharged through bankruptcy?

Some debts that cannot be discharged are child support, spousal support obligations, student loans, judgments for damages resulting from drunk driving accidents, and most unpaid taxes.
What happens if you come into money after bankruptcy?

Whatever money you get after filing for bankruptcy is yours, and doesn't become apart of the bankruptcy estate.