Aftermath of Filing Bankruptcy
Filing for bankruptcy is a big deal and should never be a light decision. While debts can be reduced or eliminated, allowing for a person to make a clean financial start, it can also be a time-consuming process that involves legal fees and a hit to the credit report. If a person decides to file for bankruptcy, their first step should be to consult with a licensed insolvency trustee in order to ensure that bankruptcy is the best option for them. If it’s decided that it IS the best option, a licensed insolvency trustee will be able to begin your bankruptcy process immediately.
Effects of Bankruptcy & How to Minimize Impact
After filing for bankruptcy, a person is in for some long-term consequences. By knowing what these consequences are, a person will be better equipped to minimize their impact.
Some of the things to expect after filing for bankruptcy is:
- Damage to the credit report
- A drop in credit score that can last for up to ten years
- Placement of the bankruptcy filing in public records (but to be honest, people won’t see this list unless they are searching for it)
If bankruptcy isn’t the best option for you, a licensed insolvency trustee will be able to provide alternatives to traditional bankruptcy, such as making a consumer proposal or debt consolidation.
Once a person is aware of how bankruptcy may affect them, they can take steps to minimize the impact of bankruptcy. One of the ways this can be done is by checking credit reports a few times a year to check on errors that may have been made. Staying diligent to check on debt can also help a person know when bankruptcy is due to be removed from their credit.
While checking in on debt, a person can begin rebuilding their credit by paying bills on time. A secured credit card may be the best way to do this until creditors determine that a person is responsible enough for a conventional credit card.
If you are in debt and are considering bankruptcy, contact our office today to meet with a licensed insolvency trustee.