What Happens After Bankruptcy?
A bankruptcy will remain on your credit record for up to ten years. However, you might still be able to get credit during that time. Some creditors take the position that their debt is more secure since you can't file for bankruptcy again for six years. In fact, some creditors solicit people who have just been through bankruptcy.
You can start rebuilding your credit by using secured credit cards and accepting invitations for credit cards received in the mail. For information, see Credit.
Chapter 13: Missed Payments
If you go through a Chapter 13 bankruptcy and fail to make the required payments, your case will be "dismissed." All creditors will then have the same right to pursue you that they had prior to your filing bankruptcy. A dismissal also stays on your credit report for 10 years. (For information about Chapter 13 bankruptcy, click here.)
You cannot be discriminated against due to bankruptcy in the following situations:
- Seeking a job.
- Obtaining public housing.
- Getting a driver's license.
Some companies do not update credit records after courts have ordered cancellation of a debt. If this happens to you, you can:
- Write the company. Let them know the debt is no longer due. Send a copy of proof that the debt has been discharged. Send the letter in a manner that gives you proof of receipt, such as overnight mail or U.S. Mail, Return Receipt Requested. Keep a copy of the letter and proof for your file.
- Check your credit record. If the debt appears, let the credit company know you no longer owe the debt. Send proof of discharge.
- If the creditor continues to press for payment, or doesn't remove the notation from your credit report, contact the attorney who handled your bankruptcy.