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Other times, bankruptcy filers are so afraid of messing up their fresh start that they pay, not realizing that they no longer owe the debt. A creditor or collection agency may even contact you trying to collect years after the bankruptcy. It is illegal however, for debt collectors to continue to contact you.

If this happens, it is advised that you gather as much information as you can from the creditor and then notify your attorney or a bankruptcy attorney.

Although the attorney may just send a brief letter advising the creditor to cease collection activity, creditors are often sued for violating the Discharge Order for thousands of dollars. How Does the Bankruptcy Affect Credit? About 60 days after your bankruptcy is discharged, you should pull your credit reports again.  The bankruptcy should be on your credit report and any accounts included in the bankruptcy should be noted as “Included in Bankruptcy” and reflect a $0 balance. If the account still holds a balance, you should contact the creditor to make the correction, and challenge the item on your credit report. Additionally, if the account is noted as open or in collections or in any other way except Included in Bankruptcy, you need to notify the creditor free credit reports free Spokane or collection agency immediately. If an amount is showing as still owed, the creditor may be in violation of the Discharge Order, as you do not owe anything on the debt after the discharge. company credit report It will be difficult free credit reports free Spokane to obtain a loan or credit after you file bankruptcy. Especially if you try to do so immediately after the discharge. Expect this for at least a year, and when free credit reports free Spokane you are able to obtain credit, also expect to pay extremely high interest rates. You probably won’t be eligible for a somewhat reasonable line of credit with a reasonable interest rate until around 2 years after your discharge, and this is if you manage to keep everything clean on your credit report during that time period. Additionally, more employers are pulling credit reports when considering applicants and you may have to pay large deposits with utility companies and phone companies. In these cases it’s best to keep your job and plan ahead. A bankruptcy may remain on your credit for up to 10 years; sometimes the credit bureaus will remove it at 7, which is the period of time that most negatives fall off a credit report anyway. credit report rights During this time it will be helpful to keep your credit report as clean as free credit reports free Spokane possible and focus on paying your bills on time. This way, you’ll have a better opportunity at rebuilding your credit history.  You cannot file another Chapter 7 bankruptcy for free credit reports free Spokane at least 8 years, at which time the 10 years on your credit report would start over again. This is another reason to try to keep your credit clean so you won’t have to file again. After you file bankruptcy, you will need to be diligent in keeping track of your old debt (for when those creditors call) and making sure the new debt doesn’t get out free credit reports free Spokane of control.

It is certainly not the end of the world, and many people find the brand new start a relief and the free credit reports free Spokane beginning of a new and healthy financial outlook. Contrary to popular belief, Chapter 7 bankruptcy is not just a get-out-of-paying-bills free card. Although it is a relatively painless process, it is a more complicated process than just a game one plays when they don’t want to pay their bills.

Although there are those will abuse the process and not take bankruptcy seriously, there are thousands of others who file bankruptcy and turn it into a learning experience that helps them to better manage free credit reports free Spokane their finances while starting over. absolutely free credit report no trial According to bankruptcyaction.com, 2010 closed with 1,593,081 bankruptcy filings and 2011 is anticipated to have just as many if not more. I would guess that this means a whole free credit reports free Spokane lot of people are taking the process quite free credit reports free Spokane seriously.

In technical terms, it is a proceeding that allows liquidation of a debtor’s non-exempt assets. If there are any (and most often there are not), they are sold by the trustee and according to priority, are distributed to the creditors that are owed money. Chapter 11 and Chapter 13 bankruptcies reorganize debt; Chapter 7 liquidates debt. Some of the exempt and non-exempt assets are as follows: The point in bankruptcy is not to financially devastate a debtor and leave them with nothing.