Starting Your Post-Chapter 7 Bankruptcy Life the Right Way
For those who aren’t lucky enough to be eligible for Chapter 13 bankruptcy, Chapter 7 bankruptcy exists to accomplish your bankruptcy goals but in a much different way. You are allowed to continue working and make money while keeping your assets with a Chapter 13 bankruptcy. However, Chapter 7 stipulates that the funds needed to appease your creditors can only be obtained by auctioning off all your nonexempt assets.
Chapter 7 bankruptcy does have its advantages though. For example, the bankruptcy process with Chapter 7 is much more abbreviated because you pay off your debts in large chunks rather than gradually which is the case with Chapter 13. This translates to the exciting opportunity of starting your post-bankruptcy life much quicker under Chapter 7.
Chapter 7 Bankruptcy: Risky Business
Bankruptcy is bankruptcy, right? It isn’t that simple, unfortunately. Each type of bankruptcy you can file tells a different story and if you file Chapter 7 then it is a less than ideal story. The fact that your income is not adequate for a Chapter 13 bankruptcy will be alarming to any new creditors that you attempt to woo following your bankruptcy filing.
It is important to rely on cash over credit after your Chapter 7 bankruptcy because you do not want to fall in the same holes you did before and have to file for bankruptcy again. However, opening up new lines of credit is essential in repairing your credit post-bankruptcy. Unfortunately, you may be viewed it as a riskier candidate to some creditors which means higher interest rates and fees.
Moving on After Your Chapter 7 Bankruptcy
Although it is simpler and comes with a wider area of eligibility, Chapter 7 bankruptcy can be very traumatizing some because it involves losing your most prized assets. However, if you be sure to keep all the exempt assets at your disposal then you will find that life after your Chapter 7 bankruptcy won’t be so bad after all. You will undoubtedly want to replace as many of your assets as possible but remember that your credit is very fragile so a “no-frills lifestyle” should be adopted so you do not fall victim to bankruptcy ever again.
If you have questions regarding Chapter 7 bankruptcy and/or what to do after you’ve filed then you should not try to answer them on your own. Consult a licensed bankruptcy attorney who can help you along the way so you can be sure that your bankruptcy, and life after, goes as smoothly as possible.
