Posted on: 15 September 2022
Once you've made the bankruptcy decision, you can still come across a few bumps during the process. None of them should stop you from attaining a financial fresh start, though.
Credit Card Misuse Worries
Some filers only find out too late that they should have been more careful using their credit cards in the weeks before they filed. Don't panic, though, if you charged things on your cards right before you filed. Creditors can object only to the most recent charges and even then, filers are allowed to use the card to cover needs. For instance, getting your car repaired is a need and so are food, gas, utilities, and more.
Filers interested in filing Chapter 7 may be worried about their income. If your income exceeds the median of your state, you might need to take an extra step before filing. The means test is part of the bankruptcy paperwork for those with higher incomes. Ask your bankruptcy lawyer to help you locate expenses to make up for that income such as high mortgage payments and debts that won't go away with bankruptcy. If the means test indicates that you make too much money even after that, consider filing under Chapter 13 since income is not a factor.
Even though you are declaring bankruptcy, you are not giving up your ability to use credit forever. Once you have filed Chapter 7, you may have an opportunity to begin building your credit using secured credit cards and more. Every day that passes after you file, your credit picture improves. Remember to use the credit you are offered wisely, pay your bills on time, and go slowly.
You probably won't lose your job because of a bankruptcy filing. In most cases, your current employer will have no idea about the filing unless you talk about it at work. If you work in an industry that requires background checks, the filing could arise if you must recertify your clearance, or you are trying to get a new job. If the issue arises, employers mostly want to know that your financial habits that led to the filing won't negatively impact your work.
If you are a renter, you may have noticed that some property management companies have provisions about bankruptcy. However, most of them don't bar filers from renting. They are mostly concerned with income and whether you are out of the bankruptcy process.
Let your bankruptcy lawyer soothe these and other worries so that you can proceed to get the relief you need.Share