As a West Dundee bankruptcy lawyer, I recommend that people use a cash basis after filing for bankruptcy. Studies have shown that people who use credit cards or debit cards charge more than those who pay with cash. And it makes sense because when you’re paying with cash you see the green actually leaving your hand and it could be painful. When you’re putting something on plastic it’s easy, you don’t worry about it on the spot, you’ll make a minimum payment 30 days from now and you’ll fall into the trap that the credit card companies want you to fall into.
After you file Chapter 7 bankruptcy, although the evidence of the filing is going to remain on your credit report for up to ten years, most of the other information should start to be eradicated from your credit report. For example, if you had a debt owed to American Express that was included in your bankruptcy then your credit bureau should be updated with information. When you pull your credit it will still show that American Express was listed on your credit report; however, it should show that the amount of debt was included in a bankruptcy so it should not show that the debt is still due and owing.
If information is still showing up negatively on your credit report after claiming bankruptcy then you must be proactive. You must send a letter disputing the information contained on your credit report and include a copy of your bankruptcy discharge as proof that it was eliminated.
If you are still having a problem with your credit report or with a creditor after your bankruptcy case is filed then you might want to contact your bankruptcy attorney. Your bankruptcy attorney has ability to send a letter or additional proof of your bankruptcy filing to any creditor that is bothering you.
If a creditor continues to bother you in violation of the bankruptcy discharge injunction then that creditor can be sued in Federal or State court. Typically a creditor is not going to contact you or will not continue to contact you once they become aware of your bankruptcy filing. Unfortunately many creditors sell the right to collect on a debt to another creditor who may not have had original notice of your bankruptcy filing.
So there is life after bankruptcy. You will get credit after bankruptcy and you will have a decent financial life after bankruptcy if you make some significant changes. The fact that you filed a bankruptcy will remain on your credit report for up to ten years; however, don’t let that discourage you from filing a bankruptcy and getting out of debt. You have to first get out of debt before you can get back on your feet and reestablish yourself and get credit again in the future. The fact that it stays on your credit report for ten years will not prevent you from getting credit if you do the right steps after filing either a Chapter 7 or a Chapter 13 bankruptcy case through a qualified bankruptcy lawyer.