Bankrupty Questions: What Happens After Bankruptcy?

If you are in debt to the point that you are considering filing bankruptcy, it is natural to wonder what happens afterwards. Most likely, given your situation, you probably have many bankruptcy questions such as what are the consequences of bankruptcy, and what does bankruptcy mean to me and my familyu.
For what it is worth, while bankruptcy has its consequences on your credit future for some time afterward bankruptcy is not a complete tragedy. Being bankrupt is more common that you may at first think. This is especially true in today’s economy.
But for sure, in most cases, bankruptcy is a natural consequence of inefficient money management, a good lesson and an effective motivation when it comes to starting over.

Bankruptcy Questions: What happens after bankruptcy?
This is a very common question when people are faced with too much debt and see no other alternative but to file Chapter 7 or Chapter 13. There are several consequences that are worth mentioning here:

You may have perfect credit when you file for bankruptcy but once a bankruptcy hits your credit report and scores, you scores can drop as much as 300 points,

For the most part, bankruptcy stays on your credit report for ten years,

Immediately after bankruptcy, for several years, you will have difficulty getting credit with reasonable interest rates. You can get credit, but due to your high risk status with a recent bankruptcy you will get credit with considerably high interest rates,

You will not be able to apply for a new mortgage for at least 2 years after your bankruptcy, and

You could have a hard time getting a new job as many employers look at job applicants’ credit reports to help assess applicant character.

If you do file bankruptcy, it is your job and it is imperative that you re-establish your credit and keep your credit history perfect. The road to recovery will be much harder and longer if you do not get new credit and keep your credit history perfect.
Therefore, while you may not like getting high interest rate offers for credit cards and loans, you should know that you should take some of these offers as long as you manage them carefully to not get yourself into another debt and credit jam.

Time In Between Multiple Bankruptcies
It is important for you to manage your credit and money very carefully following your first bankruptcy as you will not be able to use bankruptcy again for quite some time after your first filing and discharge.
After filing and getting your bankruptcy and debt discharged you must allow 8 years to pass until you can file another Chapter 7 bankruptcy. In order to file a Chapter 13 after a Chapter 7, you must wait 4 years. The distance between two Chapter 13 bankruptcies is two years minimum.
Hopefully with what you can see here, everyone can recover from a bankruptcy. It might take a little while to get back on track, but it can be done, and it is done all the time. You might find it difficult at first if you have been used to being able to say "charge it" and not being able to do that after bankruptcy. But with some practice and rearranging how you think and manage your money, recovery from bankruptcy can happen for you.