Moving On—Life after Bankruptcy
One of the most common questions we hear from people during their free evaluation is "What happens after bankruptcy?" Although each case is different, there are some general things to keep in mind when moving on with life after bankruptcy.
Discharged Debts
If you have gone through Chapter 7 bankruptcy in New Mexico, your debts will be discharged with the exception of spousal and child support, tax debts acquired within the past years, student loans, and any court-imposed fines or restitution. Your life after bankruptcy will be free of the debts you have accumulated prior to filing.
Repayment Plans
Under Chapter 13 bankruptcy, you'll have to follow your court-mandated repayment plan, which generally lasts from three to five years. Your single payment to a court-appointed trustee should fit within your budget, allowing you to pay your creditors without undue hardship.
Rebuild your Credit
No matter which type of bankruptcy you have gone through, you can start to rebuild your credit. You can continue acquiring credit post-filing. While reestablishing a new credit history can take time, the important thing is that you're in a position to make a fresh start. As part of the bankruptcy process, you will undergo financial counseling to help you manage your finances.
At Melwani Law we understand that no one is immune from serious debt trouble. By filing bankruptcy, you can give yourself the breathing room you need to get back on your feet. Don't delay—speak to one of our experienced New Mexico bankruptcy attorneys immediately. Call 866-501-8500 and start moving on with your life today.