After a bankruptcy case is in process or ends, there are certain things you can do to protect your future money situation. A Michigan bankruptcy attorney can tell you what you should do in your specific situation.
Once you file a bankruptcy case, the court orders your creditors to stop trying to collect payment from you. If a creditor calls, writes, or does anything else to try to get payments from you, let your lawyer know right away. The lawyer can report the matter to the bankruptcy court to stop the creditor communications.
Keep your bankruptcy petition, notice of bankruptcy filing, and your discharge papers in a safe place. Sometimes, when you apply for credit after a bankruptcy, the lenders want to review your paperwork from your case.
After your bankruptcy, it might take a few months for creditors to report that your debts were discharged in bankruptcy to the credit reporting agencies. Wait about three to six months, and then check your credit reports. Make sure that all your discharged debts are showing up correctly and that no information is incorrect. If it is, contact the credit bureaus to challenge wrong information.
After filing bankruptcy, the last thing you want to do is rack up debt again. You should make a budget that is realistic given your income and expenses. Start building up an emergency fund, so you do not have to rely on credit if your car breaks down or you need home repairs. By sticking to your budget, you can build savings, avoid having high debt payments, and move forward with financial confidence.
You might not get approved for a new mortgage or credit card right away following a bankruptcy, but you should think about rebuilding your credit in the future months and years. Often, you can start with a secured credit card with a bank, which involves you paying upfront and borrowing from those funds you provided. Speaking with a credit advisor can help you rebuild your credit score over time and manage your future credit.
Bankruptcy is not “free money” like many people think. It is a second chance at financial success and freedom. Appreciate this do-over, and work to make sure you will not need another financial bailout in the future. Filing another Chapter 7 bankruptcy is only allowed after eight years.
When you are thinking about filing for bankruptcy, you should never wait to talk to a Michigan bankruptcy attorney about your situation. Attorney Karen E. Evangelista can look over all your debts and let you know whether we believe bankruptcy is a good choice to help your money problems. We can also let you know things to do and not do after you file for bankruptcy. Contact us for a free consultation.