A question I am frequently asked is what should my clients do after they receive a discharge in a Utah Chapter 7 Bankruptcy. Here are a few steps you should take to rebuild your credit, ensure your financial future, and make sure you get the most from your fresh start.
Check Your Credit Report. You should check your credit report about 3-4 months after your discharge. You can get a free copy of your report once a year from each of the major agencies at www.annualcreditreport.com. Every debt discharged in your bankruptcy should be noted as “discharged in bankruptcy”, “Closed”, or the like. If a debt is still listed as owed, then it needs to be disputed. There may also be credit reporting violations so you should contact my office to review your credit report with you.
Save Your Bankruptcy Paperwork. It is important to keep copies of your bankruptcy petition, schedules, and order of discharge for your records. You can retrieve these documents from the court later, if you lose them. However, it may cost you and can be a bit of a hassle.
Do Not Wait too Long to Make Payment Arrangements to Any Non-dischargeable Debts. Debts that are generally non-dischargeable in a Utah Chapter 7 Bankruptcy are taxes, student loans, criminal fines, and child support. Generally it takes 2-4 months after your Utah Chapter 7 Bankruptcy discharge for these creditors to resume the collection on your account. Frequently my clients are able to negotiate a reasonable payment plan and/or settlement if they are proactive with creditor.
Start Rebuilding Your Credit. Be careful here because more than likely it was credit that caused you to file your Utah Chapter 7 Bankruptcy. First and foremost, if you reaffirmed a secured debt in your Utah Chapter 7 Bankruptcy like an automobile or home loan, stay current on those loans. Nothing hurts your credit faster than missed payments. To rebuild your credit, you may wish to obtain a secured credit card. A secured credit card uses money deposited in a bank account as collateral for the credit card.
If you take care of these few items after your bankruptcy, you will be well on your way to a better financial future. Please call me at (801) 432-8682 to discuss your options to start on your path to financial freedom.
