Choosing The Right Course of Action

About four years ago, I could tell that things were turning south with my business. Cash flow was tight, and customers simply weren't coming back to shop some more. I realized that if I was going to keep my house, I would need to do something to resolve my finances. Although it was scary, I decided to meet with a bankruptcy attorney. After I explained my situation, he helped me to understand the process and how to tell if it was a good idea or not. When I decided to do it, things started changing for me right away. This blog breaks down bankruptcy in layman's terms, so that you can decide whether or not it is right for you.

What You Need To Do After Filing For Bankruptcy


Considering a bankruptcy to clear your financial problems can be a positive and negative experience. The ultimate goal is to help you begin your finances again with a clean slate. However, there are some lasting disadvantages that will have an impact on your credit for several years. If you decide to move forward with bankruptcy, it is important that you do not become complacent. Your credit will improve, but you still must keep an eye on your credit report along the way. The following are some things to know once you have filed for bankruptcy:

Continue Checking Your Credit Report

Once you have gone through the bankruptcy filing process and everything is underway, you need to check your credit report at least every few months. This will help you keep an eye on where you stand with your debts. It can take some time for your debts to come off your report, so it is a good idea to watch for that to happen just so you can stay on top of the process.

How Your Debts Will Appear

When you look at your credit report, you will still see the debts listed even if they are no longer payable by you. They will be discharged and show a zero balance. If you have a debt that still has a balance that should be discharged, you will need to dispute it with the credit reporting agency.

Note Incorrect Information on Your Credit Report

When you check your credit report, you need to carefully check for any mistakes or misinformation. There may be an instance where your creditor does not list your discharged debt correctly. You will need to contact the credit reporting agency to have any mistakes corrected. If any information is false or remains incorrect after you have made the attempt to correct it, the credit reporting agency is in violation of the law. If they refuse to make changes to incorrect information, you can actually bring a lawsuit against the credit reporting agency to clear your report.

When You Will Notice Improvements

There is no specific timeline on how long it will take for your credit score to improve, as it will vary from person to person. You should notice a small change immediately upon filing because your creditors will show a zero balance of money owed. Since your debt-to-income ratio will improve very quickly, it is not unusual to see at least a small jump in your credit right after filing.


16 January 2018