Most people think that easy living is all that’s waiting for them once they have declared bankruptcy and squared away their problems with the IRS. Although filing for a Chapter 7 bankruptcy is one of the most effective solutions, tax lawyers will tell you that there are still some challenges along the way. You should know what to expect after declaring bankruptcy so you can prepare yourself.
Getting a Discharge
Once you file for bankruptcy under Chapter 7, it would take somewhere between three to four months before you get a discharge. During the process, your lawyer will be with you along the way if any problem presents itself. For instance, there can be delays in your creditor’s or the IRS’ part. Your lawyer can help you resolve such issues as the negotiator on your behalf.
One overlooked aspect of a Chapter 7 bankruptcy is that it will appear on one’s credit report. It could stay there for up to ten years, much like with Chapter 13. You will have to start relying on cash rather than credit. The good news is that Chapter 7 bankruptcy is not as strict as Chapter 13. You can still obtain credit to help get your old lifestyle back. If you keep at it, you might even get new credit card offers shortly after.
Tax lawyers would advise debtors to rebuild credit as soon as possible and keep their spending habits in check to avoid more problems in the future.