What Happens After Bankruptcy?
Many individuals are misinformed about the bankruptcy process and what happens after bankruptcy. If you are struggling with debt, it is important to learn all you can about your legal options.
At Rosenbaum Law Offices (now Davis Law Firm) in San Antonio, we help individuals and businesses understand the effects of bankruptcy. To schedule a free confidential, initial consultation with an experienced bankruptcy attorney, please contact us online.
Find out more about bankruptcy’s effect on:
- Credit — Once you have completed bankruptcy, you are entitled to a fresh financial start. After bankruptcy, it is reported that you no longer owe your creditors — debt consolidation agencies do not offer that level of protection. With a clean financial slate, creditors are more likely to lend you money. Although there may be a waiting period to re-establish your credit, most people have better credit following bankruptcy than they did in the time before filing.
- Pending lawsuits — Judgments are avoided under bankruptcy, and are wiped out in Chapter 13 bankruptcy and Chapter 7 bankruptcy. However, bankruptcy will not stop criminal actions.
- Home and vehicles — Chapter 13 bankruptcy stops foreclosure on your home, allowing you to catch up on payments to your mortgage company. Chapter 13 bankruptcy also stops repossession.
- Student loans — It is difficult to get rid of student loans through bankruptcy. Basically, it is necessary to prove that you will never be able to repay your student loans.
- Cosigners — If the loan for the amount of debt is paid in full, the cosigner is protected. If it pays less than 100 percent, the cosigner is responsible to pay the other unpaid percent.
For more information about the effects of bankruptcy, contact Rosenbaum Law Offices (now Davis Law Firm) today to speak to an experienced attorney.