What To Do Legally If You’ve Gone Bankrupt
Knowing that you are financially troubled may be challenging. In fact, the moment you admit that you’ve gone bankrupt is even harder. Apart from the emotional burden you may experience, there are some factors to consider when dealing with bankruptcy properly. While bankruptcy is regarded as a legal process, understanding its consequences is also essential. To help you deal with the effects of bankruptcy on your financial health, here’s what you need to know when you’ve gone bankrupt.
What are the consequences of bankruptcy?
While bankruptcy can help you eliminate some of your debts, there are still consequences that may affect you in the long run. However, being mindful of these consequences can go a long way in figuring out your next financial options. Effects of bankruptcy include:
- A trustee who will work with you and your creditors will be assigned to manage your bankruptcy. Their objective is to come up with a fair and sensible outcome for both parties.
- Bankruptcy lasts for a long time.
- The aftermath of bankruptcy may affect your employment and business.
- Bankruptcy can affect your eligibility to travel abroad.
- When you’ve been declared bankrupt, it doesn’t mean you’re free from all your debts.
- Your insolvency can factor into your chances of getting future credit.
By keeping these consequences in mind, you’ll be able to know how to deal with your financial situation after you’ve been declared bankrupt by the court. If you think of rebuilding your financial health after a bankruptcy, keeping these outcomes in mind can also help you make sound financial decisions in the future.
What should you do legally when you’ve gone bankrupt?
There can be plenty of things to happen after you’ve been issued with a bankruptcy order by the court. In fact, the possibility of facing some issues after going bankrupt is still high. In most cases, these problems arise when your creditors continue to chase you for payment of your debts. Here’s what you need to do legally if you’ve gone bankrupt:
- Keep copies of all paperwork from your bankruptcy case.
Keeping copies of all paperwork concerning your bankruptcy case is also essential. You should collect and preserve all the documents including those which have facts about your assets and debts involved in the case.
- Take note that having these papers in your possession can help when you consider getting new credit. Although the information is automatically reflected in your credit report, there are still many creditors who think that it’s vital to check what you have settled in your old debt.
- In case anyone attempts to go after you and collect some money on the old debt, it’s also best if you have kept some of the documents involving your bankruptcy case. That way, you’ll know how to handle instances where some of your creditors don’t stop chasing after you even though you’ve gone bankrupt.
- Monitor your credit report regularly.
Going bankrupt doesn’t necessarily mean it’s the end of your financial health. To be back on track, you can check your credit reports regularly after your bankruptcy.
- While you want to make sure that all settled debts from the bankruptcy case have been reported to the credit bureaus, it’s still worth keeping in mind to check it yourself to ensure that everything about your bankruptcy situation is in place.
- By monitoring your credit reports, you’ll be able to know what debts are discharged from the bankruptcy. You can also make sure that nothing new appears on your statements for a few months or years after having been declared bankrupt by a competent court.
- Take note that the law requires some credit reporting agencies to remove a bankruptcy filing in the credit report for ten years. However, sometimes it doesn’t happen. That’s why it’s very crucial if you have a copy of your credit report to inspect to ensure that the loans discharged in bankruptcy no longer appear on your account.
- Remember that the results of bankruptcy can last on your credit report for ten years as provided for by law, thus it’s also vital to know how it can impact your credit rating moving onwards.
- Talk to a bankruptcy attorney.
While dealing with debt and bankruptcy can sometimes be overwhelming, the act of speaking to a bankruptcy attorney can always be an excellent idea.
- Keep in mind that although you’ve already gone bankrupt, it’s still in your best interests to consult a lawyer to learn more about what should be done after the bankruptcy proceedings. By hiring a lawyer, you’ll be able to know whether you have other available options to take regarding your bankruptcy case.
- In these types of situations, it’s best to take note that talking to an attorney can also help you get appropriate legal advice when it comes to handling a bankruptcy judgment. That way, you’ll also be able to know what to look forward to after going bankrupt.
Facing bankruptcy can be confusing. Apart from accepting the reality of having to declare bankruptcy, you also need to continue your life after it. While the process can be a bit challenging, we hope that the examples mentioned above from Blclawcenter.com have provided you with some insights on what to do legally when you’ve declared bankruptcy.
Michael Lawson is a specialist bankruptcy attorney who has helped many clients in the past move past their bankruptcy. He currently writes for Blclawcenter.com. In his spare time, he likes to enjoy some downtime traveling with his family.