Signs You Have Recovered From Your Bankruptcy
Picture this: your personal bankruptcy is completed and you are opening your mail to discover your bankruptcy discharge papers stating that all of your debt has been eliminated through a chapter 7 bankruptcy. Sounds great, right? The best part about it is that the idea isn’t so far fetched; it happens to thousands of Americans every day. The day that you receive your bankruptcy discharge in the mail is the day the credit recovery process starts. Here are some signs that you have recovered from your bankruptcy:
- You Aren’t Hearing from Creditors: Before you filed personal bankruptcy you may have been one of millions of Americans that are plagued every day by creditors calling them. Depending on who your creditors are it could be legal for them to contact you at home 5-10 times a day asking for some kind of payment. This is enough to stress anyone out, and it’s sometimes just unbearable. If you are no longer being harassed by creditors every day then it probably means that they received notice of your bankruptcy and have correctly reported your account to the credit bureau as having a zero balance.
- You are Able to Save Money: Typically, when a chapter 7 bankruptcy is complete most unsecured debts are wiped away and you are able to start fresh financially. In most cases the debtor goes from having dozens of bills each month to simply the necessities like rent, utilities, and groceries. This allows individuals coming out of bankruptcy to do something they may have never had the chance to do before: save money! Treat your savings like you would any other necessary payment and put something towards it with every paycheck. Before you know it you will have a savings account to really be proud of.
- Your Credit Score is on the Rise: You may have heard the myth that filing bankruptcy drops your credit score to zero and it’s impossible to ever bring it up again, but don’t believe everything you hear! Although filing personal bankruptcy does affect your credit score it does not drop it to zero and you will have the ability to increase it the day your discharge papers are in. You can rebuild your credit score by making timely payments on secured debts like vehicles, utilities and student loans. Increasing your credit score after filing bankruptcy does not happen overnight, but with positive financial decisions it typically becomes better than it has ever been.
Filing bankruptcy is a process; before filing you are looking for an affordable bankruptcy attorney, during the filing process you have to decide Chapter 7 vs. Chapter 13, and after your bankruptcy is completed you have to continue on the road to financial recovery. Just remember that you aren’t alone in this process and make sure to ask your bankruptcy lawyer plenty of questions each step of the way. Although bankruptcy may seem like a daunting process, in most cases the outcome is well worth the wait.