Garcia & Gonzales, P.C.
Life after Bankruptcy: 6 Facts to Know (Pt. 1)
Pursuing bankruptcy can help people resolve some significant debt issues. In fact, by eliminating some of the more common and crushing debt people have (like credit card debt), bankruptcy can effectively provide people with a financial fresh start.
Given, however, that successful bankruptcy cases are often a first step in the road to full financial recovery, in this blog series, we will take a closer look at what people can generally expect from life after bankruptcy.
While the info herein is generally helpful, if you are ready to pursue the best debt relief options for you with the help of an experienced professional, it’s time to contact the trusted Denver bankruptcy attorneys at Garcia & Gonzales, P.C.
Life after Bankruptcy: Here’s What You Should Be Prepared for
1 – After bankruptcy, you may have some persisting debt obligations.
Depending on the debt you are carrying prior to bankruptcy, some of that debt may not be eliminated by your bankruptcy case. In fact, this type of debt can be referred to as non-dischargeable debt, and this may include (but is not necessarily limited to):
- Student loan debts
- Debt related to spousal and/or child support
- Some tax debts (depending on how old they are, when the related tax return was filed, etc.)
- Restitution-related debt (i.e., debt related to a court-ordered payment associated with a criminal conviction)
- Debts related to government fines.
Although such debt will typically not be resolved through bankruptcy, getting other significant debts – like mortgage and medical bill debt – eliminated in bankruptcy can provide people with the financial relief they may need to:
- Start paying down non-dischargeable debts after bankruptcy
- Improve their financial situation.
2 – Bankruptcy can have some credit impacts.
While successful bankruptcy cases can resolve a significant portion of people’s debt, bankruptcies will be noted on their credit reports and may end up impacting their credit scores. Here, however, it’s essential to note that:
- Just how bankruptcy may impact a person’s credit/credit score will depend on various factors, including that individual’s credit prior to filing for bankruptcy.
- In many cases, the credit impacts of bankruptcy are eclipsed by the significant debt relief bankruptcy provides.
- People considering bankruptcy may already have damaged credit, and their best option for repairing/improving it can be to move through bankruptcy, eliminate some debt and achieve a financial fresh start.
For more facts about life after bankruptcy, check out the additional parts of this blog series that will be posted soon.
Denver Metro Area Bankruptcy Attorneys at Garcia & Gonzales, P.C.
Are you looking for real relief from serious debt? If so, you can trust the experienced Denver bankruptcy attorneys at Garcia & Gonzales, P.C. to provide you with experienced help, honest answers and the highest quality legal services. With more than 50 years of combined legal experience, our trusted lawyers have the legal knowledge, skills and insight you can rely on to help you favorably resolve your debt issues and obtain a financial fresh start.
To learn more about your best debt relief options, as well as how we can help you, contact us today by calling or by emailing us using the drop-down contact form at the bottom of this page.
When you contact us, you will communicate directly with one of our attorneys, not a paralegal or legal assistant. We welcome Spanish-speaking individuals to contact us also – hablamos Español.