For those facing an overwhelming amount of debt, bankruptcy can provide a much-needed fresh start. Discharging debt isn't exactly a quick fix, though, as it has repercussions, especially regarding creditworthiness. As such, it’s natural for petitioners to have as many questions about life after bankruptcy as they do about the actual proceedings. 

What You Should Know About Life After Bankruptcy

Can I ever declare bankruptcy again?

If you filed chapter 7 for this first time, you’ll have to wait eight years before filing again. If you filed chapter 13, you’ll have to wait at least two years before attempting to file another chapter 13 case. If you want to file chapter 7 instead, you must wait six years or until they’ve paid at least 70% of the claims. 

How can I avoid a second bankruptcy?

The best way to avoid financial issues in the future is to stick to a manageable budget. It’s also wise to start a savings account to avoid going into debt when unanticipated expenses arise. Finally, practice preventive care by leading a healthy lifestyle and staying on top of all the recommended exams and screenings. More than half of all filers cite medical issues as a major contributor to their financial struggles. 

Can I buy a house or car after declaring bankruptcy?

It’s possible to finance major purchases after bankruptcy. However, borrowers typically have to improve their credit first. Thankfully, you can start rebuilding credit immediately after finalizing the proceedings. For example, most filers can qualify for a secured card fairly soon after, which will boost their credit over time if they use it responsibly. 

How long are bankruptcies reported by the credit bureaus?

A chapter 7 filing will remain on a credit report for ten years. However, if you make smart money moves following the discharge, you can qualify for financing long before the bankruptcy is deleted. Chapter 13 is reported for seven years after the filing date because at least a portion of the dischargeable debts are repaid. 

To explore various debt relief options, turn to Nancy V. Jacob in Cincinnati, OH. This knowledgeable bankruptcy attorney has more than 30 years of experience in the legal field. She’s well-versed in bankruptcy code and is proud to help clients regain their financial footing by filing chapter 7. To request a free consultation, call (513) 921-1400, and visit her website to prepare for your appointment.