What Happens After you File Bankruptcy is that you begin to enjoy a fresh financial start. This means that if you owe someone a debt and you’ve filed a chapter 7 that debt is forgiven. You’re no longer living with the fear of a wage garnishment or the next asset hearing at the court house. Its now time to rebuild your confidence knowing that things are really going to improve from here on out.
Automatic Stay and Bankruptcy:
Among what happens after you file Bankruptcy is that the automatic stay goes in to effect. The automatic stay is part of your Oklahoma bankruptcy filing. It orders that any and all collection activity against you must stop. Thus the automatic stay is a powerful tool in bankruptcy. If a creditor continues to attempt collecting from you this is a violation of the stay. The bankruptcy court provides many remedies against those that violate the stay. Some of those penalties include attorneys fees and other fines and court costs. The automatic stay is why once you file all wage garnishments stop. If a debtor continues garnishing your wages after you file they’re in deep trouble.
Meeting of The Creditors:
One of the next things that happens after you file bankruptcy is your meeting of the creditors sets. This is a simple meeting and all bankruptcy cases have it. Where you have the meeting depends on which county you live in when filing the case. Given there’s only three federal bankruptcy courts in Oklahoma you’re going to one of the three. Those include Tulsa, Oklahoma City or Okmulgee. The meeting is simple. At the meeting you need to have your drivers license and social security card. The trustee will examine them and then ask you some questions. The questions are nothing different than whats already been answered in your bankruptcy forms. Things like where you live and what are your expenses is a good idea of the trustee question.
Rebuilding Your Credit:
Another thing that happens after you file bankruptcy is that now you can begin to rebuild your credit. Most people find out that even though the bankruptcy stays on the credit report for 8 years you’ll quickly begin rebuilding credit. One among many other reasons is that you no longer have the mountains of debt you once had. Because you filed most of your debt has been forgiven making your debt to income change in your favor. Moreover because you can only file every 8 years creditors know you cant file anytime soon. This with other factors combine to help you regain a good credit score.