Our Bankruptcy Blog

Moving On After a Chapter 7 Bankruptcy?

The process of filing for chapter 7 bankruptcy can be complicated. While debtors usually feel a sense of relief after discharge, this sense of relief also poses questions about how to move on after bankruptcy.

People will often ask, “What happens after chapter 7 bankruptcy?” This is understandable since many have never experienced bankruptcy before. In addition, many also want to know about the length of time that bankruptcies will stay on their credit report.

We’ve put together a few answers for those exploring these issues and we outline some practical steps to move forward after a chapter 7 bankruptcy.

How Long Does Chapter 7 Bankruptcy Take?

In and of itself, chapter 7 bankruptcy is not an extremely long process. Within three to four months after filing, most people can complete the process and obtain a discharge of the qualified debt.

There are some instances when the process may take a longer period of time. More time is added to the process when there are creditor objections when additional documentation is required, or in the instance of more complex cases. Also, if the trustee is selling assets the case may remain open until those assets are sold.

After a chapter 7 bankruptcy, if you continue receiving collection attempts on the discharged debt, make sure to send a copy of your discharge to the creditor. If they continue harassing calls or communication, talk to a bankruptcy attorney about possible legal action against the creditor.

How Long Does Chapter 7 Bankruptcy Stay on a Credit Report?

This is one of the most common questions people will ask. Chapter 7 bankruptcy remains on your credit report for ten years after the filing date.

After this time, the bankruptcy and any related accounts will be removed automatically. Even though this seems like a long time, in no way does it prevent filers from obtaining credit and rebuilding their finances as they began the process of moving on.

It is crucial that after bankruptcy, the debtor begins making changes to keep from ending up in the same situation. Parker & DuFresne offers a free credit rebuilding program for our clients to teach them how to stay on the right track. More on that is below.

Practical Steps for Moving On

After a chapter 7 bankruptcy, clients have many options for rebuilding their credit, including the use of a secured credit card. Secured credit cards are great options because they work by allowing you to deposit a specific amount of money into a bank account that serves as your credit limit.

This allows you to build credit while paying down debts quickly. It’s also important to realize that by focusing on building a monthly budget, monitoring spending habits, and paying bills on time, it is possible to have excellent credit again in the future.

So, there is no reason to think that your credit will be ruined for the next 10 years. By implementing the correct strategy, you can begin seeing your credit score improve very quickly.

Credit Rebuilding After Chapter 7 Bankruptcy

At Parker & DuFresne, we understand that filing for bankruptcy is just the first step toward rebuilding your finances. This is why we teach our clients how to implement a proven strategy for rebuilding their credit after they file.

Our credit rebuilding program provides clients with this proven strategy for rebuilding their credit scores. We provide this program, which normally costs $1,000, to our clients for no additional fees.

There is life after chapter 7 bankruptcy. At Parker & DuFresne, our goal is to get clients across Northeast Florida back on the road to financial stability as quickly as possible. We empower our clients with the resources they need to receive a successful case and have a bright financial future.

We specialize in bankruptcy law. Through a thorough free consultation, our attorneys will help you determine if bankruptcy is the right solution for you. If you would like more information about the bankruptcy process, and what happens after a bankruptcy, contact us today to learn more!

Parker and DuFresne

Parker and DuFresne