What Happens After You File for Bankruptcy?

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Attorney David Shuster | 888-365-0921 | Schedule Your Consult Today

“These consumer individual bankruptcies… [are] a straightforward process with little surprises and… talking to your attorney ahead of time will avoid even those rare surprises.”

So, you’re considering filing for bankruptcy. Like the hundreds of thousands of the other Americans who file for bankruptcy every year, you’re probably wondering: what happens after you file for bankruptcy?

David Shuster is a debt relief attorney with Shuster Law, PLLC in the Dallas—Fort Worth area. In this video, he explains what to expect after a bankruptcy filing.

To learn more, contact the attorney directly by calling 888-365-0921 or by submitting a contact form on this page.

Key Takeaways From David Shuster:

After generating and reviewing your bankruptcy petition with your attorney, and submitting it to the court, you will be assigned a case number confirming that you have a federal case which prevents creditors from collecting against you. It also prevents creditors from harassing you about late payments.

You will still be allowed to pay toward your home and/or car payment, but the process to do so may be different.

In order to pay toward your mortgage or car payment—even if it was set up to automatically draft—your attorney may need to sign a paper approving it before the companies will deal with you directly. You may be required to send your payment to a bankruptcy address. Although this may be alarming at first, it can be a great relief to experience a break from the constant direct contact from creditors.

Keep an eye on the mail for information coming to you from the bankruptcy court.

About 30-40 days after filing for bankruptcy, you should receive a notice of the hearing to come. This letter will provide you with important information like where to go, when to be there, and what to bring with you—usually your drivers’ license and Social Security card.

You must attend a hearing your attorney; however, this is likely not the experience you may be expecting.

Your hearing will occur in a meeting room in a government building, where you will be asked a series of straightforward questions regarding your situation. If you keep your answers short and to the point, your hearing may only last about ten minutes! Most people only need to take a half-day off work to make their appointment.

It’s very rare for one of these hearings to go other than expected, excluding the cases which may involve a concerned/irate third party such as a business partner or ex-spouse. If there is no reason for a creditor to object—and there rarely is—now you will simply have to wait for the assigned deadline to expire. After that, the court will send you a discharge and your case is effectively done, though you may need to complete an online credit counseling course beforehand or in the meantime, your attorney can advise you.

After your bankruptcy case is done and discharged, you may want to start thinking about how to rebuild your credit score.

Shuster advises people to pull their credit report so they can see their debts noted as discharged in bankruptcy. After this, apply for a low-limit, revolving credit card, which can then be used for gas, groceries, and other necessities you would otherwise use a debit card for. Use your new credit card, pay it off, and this will be reported to the credit bureaus so you can develop a new credit history. Reaffirmations of loans and payment plans can also serve to rebuild your credit score.

Consumer individual bankruptcies are generally extremely uncomplicated and forthright. Although the entire process takes around 90 days from start to finish, it is unlikely that you will experience complications regarding your case. It’s a good idea to talk to your attorney before the hearing so you can learn more about what questions to expect, and what the attorney’s thoughts may be on your individual case.

To learn more, contact David Shuster directly by calling 888-365-0921 or by submitting a contact form on this page.

Disclaimer: This video is for informational purposes only. In some states, this video may be deemed Attorney Advertising. The choice of lawyer is an important decision that should not be based solely on advertisements.