Aftermath

• Declaring bankruptcy is a process that involves a lot of paperwork and considering financial decision for the future. In this process, debts that will be discharged are identified. After the bankruptcy hearing, the judge makes his or her decision regarding each request; once the requests have been granted, you know what debts you have remaining to make timely payments on.
  
  

Effects

• People who have just declared bankruptcy may apply for and receive new credit because credit bureaus pay attention to current financial events rather than the past. It is possible to apply for and obtain a new mortgage or car loan, but you will need to show a recent credit history, which describes on-time payments.
  
  

Considerations

• Declaring bankruptcy remains on your record for about 10 years. It will be very difficult, although not impossible, to obtain new credit during that time. Ensure you manage new credit wisely and make regular payments on time, which will increase your credit score down the road.
  
  

Benefits

• Debts that are not discharged by Chapter 7 bankruptcy include child maintenance obligations, the last three years of income tax debt, federal student loans, debts for willful or malicious injury or criminal restitution orders. Once your debts have been discharged, teach yourself to pay them on time.
  
  

Warning

• People applying for new credit cards should be cautious and make special note of any APR or interest rates. Individuals who have just declared bankruptcy are given higher interest rates, dismissing the fact that they may not be able to bear the monthly payments.