Life after Bankruptcy


The credit industry works overtime letting Americans know the negatives of a bankruptcy filing. Because of this many Americans do everything to avoid filing bankruptcy every year because of fear of the unknown. Not knowing what is in the future causes many to try and avoid the process at all costs.

Most of the reasons that people fear bankruptcy is because of the myths and rumors that are online and pushed out into society. Many people believe that they will never be able to get credit again because they filed. This is far from the truth because creditors are opportunists and know that most people leaving a bankruptcy filing are close to being debt-free.

As long as they continue working and making decent money, creditors will see this as an opportunity to get in on the ground floor. Although credit won’t be available immediately, within six months to a year, most people start getting offers for credit cards. This is when a person post bankruptcy should really be careful of getting saddled with the same debt that took them down. They need to remember that they won’t be able to file bankruptcy again for another eight years.

Another thing that people worry about is having all their property seized by the bankruptcy trustee. It would be pretty hard to get the fresh start that bankruptcy promises if they drove a big truck over to the filer’s house and loaded up everything they owned to sell and give the proceeds to the creditors. The bankruptcy trustee always assesses the value of the unsecured property versus the time it would take to sell it quickly and the amount that they would receive from the sale. If it isn’t worth their while, they won’t bother.

Congress knew that when they enacted the bankruptcy code that it was important to give an individual an opportunity to get back on their feet and that’s why they enacted bankruptcy exemption laws. The bankruptcy exemption laws allow an individual filing for bankruptcy to keep a generous amount of property.

The last thing that people worry about is destroying their credit rating. First of all, when someone is at the point of a bankruptcy filing, they probably haven’t been paying their bills and their credit is already in the tank. After the bankruptcy discharge, their credit only has one way to go and that is up. And the best thing about life after bankruptcy is, no more phone calls by obnoxious creditors berating you to take your last dollar. So in reality, life after filing bankruptcy is much better than living in debt.