Skip to content

Life After Chapter 7 Bankruptcy

Michael Agruss

Written and Reviewed by Michael Agruss

  • Managing Partner and Personal Injury Lawyer at Mike Agruss Law.
  • Over 20 years of experience in Personal Injury.
  • Over 8000+ consumer rights cases settled.
  • Graduated from the University of Illinois Chicago School of Law: Juris Doctor, 2004.

If you’re filing for Chapter 7 bankruptcy, you may have a variety of questions about what things will be like when bankruptcy is over, such as how your credit will be affected and whether new credit will be available. The truth is that while individual cases can vary greatly, Chapter 7 offers you the opportunity for a fresh financial start, but you must begin and maintain sound financial practices upon your discharge to ensure that you truly regain control of your finances.– How will my credit report be affected? – Chapter 7 bankruptcy will stay on your credit report for ten years, and your credit score may decrease immediately after filing. However, Chapter 7 can also help you to reestablish your credit faster than you would while struggling to repay your debts for years into the future.– When can I begin reestablishing my credit? – You can begin doing so immediately after you receive your discharge. If you reaffirm debt on your car or home, the creditor will usually report that you are making your payments on-time as they become due, which can also help your credit score. Some types of credit may be difficult to obtain immediately after bankruptcy, such as home loans or credit cards, but your eligibility will improve over time and some clients have even brought their credit scores above 700 within just two years of filing for Chapter 7.Here are some tips for rebuilding your credit:– Use credit wisely rather than avoid it – Avoiding credit does nothing to improve your score, and you may still pay higher interest rates or even be denied for certain loans.– Open a new credit line and stay up-to-date on payments – Some credit card companies offer secured credit lines which require your money (ex. $500 to access credit for purchases up to $500), but these purchases can be reported as positive payments on a line of credit, which will be reflected on your credit report and can improve your score. It’s important that you stay completely up-to-date on these payments.– Monitor your credit report – After your discharge, make sure it reflects that your discharged debts are indeed discharged and do not have remaining balances. Any errors can be disputed directly with the credit reporting agency.If you are struggling financially and considering filing for Chapter 7 bankruptcy, you’re not alone. Contact an experienced bankruptcy attorney today for a free consultation.

Submitted Comments

No Comments submitted yet. Sharing your story will help others!

We are listening

We will respond to you at lightning speed. All of your information will be kept confidential.

Form successfully submitted!