Life After Bankruptcy

The bankruptcy court will mail to each of your creditors a "Notice of Commencement of Case", informing them that you have filed the petition and advising them of the date of the First Meeting of Creditors.

About 30 to 40 days after filing the bankruptcy petition, you will be required to attend a hearing presided over by a bankruptcy trustee. This hearing is called the First Meeting of Creditors. The trustee is not a judge, but an individual appointed by the United States Trustee to oversee bankruptcy cases.

At the First Meeting of Creditors the trustee will ask you questions under oath regarding the content of your bankruptcy papers, your assets, debts and other aspects of your financial situation.

In an ordinary chapter 7 proceeding the Bankruptcy Court will automatically grant an Order of Discharge 60 to 75 days after the First Meeting of Creditors.

At the moment a bankruptcy petition is filed, your creditors are automatically restrained from taking any action to collect the debts owed them.

There are some exceptions, for example, a bankruptcy petition does not stay the commencement or continuation of a criminal action, an action to collect spousal support, or an action to enforce a government's police or regulatory power.

Make sure the creditor is aware that you filed bankruptcy and ask it to stop collection efforts. If the creditor does not respond, you may seek a court order enjoining the creditor from further action.

If you are an individual and are injured by your creditor's willful failure to comply with the automatic stay, the law allows you to recover actual damages, including costs and attorneys' fees, and, in some circumstances, punitive damages.

The bankruptcy will be listed in credit reports for a period of up to 10 years.

Yes. The decision of whether to extend you credit belongs to each particular lender. However, the fact that you filed bankruptcy, if properly explained, can be less damaging than a history of unpaid accounts.

You may be able to obtain a secured credit card, where the credit limit is based upon the amount of security given, or obtain credit using a co-signer not long after your case is discharged.

Generally it will take about two years to substantially rebuild your credit. In 18-24 months after a bankruptcy, you should be able to qualify for a mortgage.