Life After Bankruptcy

When a person receives their Notice of Discharge and Final Decree in the mail indicating that they have successfully completed their bankruptcy, congratulations are in order! They can get on with their life and enjoy the fresh start that bankruptcy offers.

After bankruptcy, creditors whose debts have been discharged may not pursue the debt further.  If such a creditor does try to collect a debt after your bankruptcy discharge, write to the creditor and state that your debts were discharged. To the extent you have the following documents, include a copy of your discharge notice, the page from your petition where the creditor was listed, and then either the Notice of Filing or the Notice of §341 Meeting of Creditors. 

Rebuilding your credit

Although a bankruptcy filing can remain on your credit record for up to ten years after your discharge, you can probably rebuild your credit in about three years to the point that you won’t be turned down for a major loan (although the current credit crisis may make the process more difficult). Most creditors look for steady employment and a history, since bankruptcy, of making and paying for purchases on credit. And many creditors disregard a bankruptcy completely after about five years. 

Keep your credit file accurate

Rebuilding your credit requires you to keep incorrect information out of your credit file. Start by obtaining a copy of your file from one of the “big three” credit reporting agencies:

  • Equifax, P.O. Box 740241, Atlanta, GA 30374; 800-685-1111; www.equifax.com
  • Experian, P.O. Box 2104, Allen, TX 75013-2104; 888-EXPERIAN; www.experian.com
  • TransUnion, Consumer Disclosure Center, P.O. Box 2000, Chester, PA 19022; 800-888-4213; www.transunion.com

You can request one free report per year from each of the above three by contacting the Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281; 877-322-8228; www.annualcreditreport.com.

Credit files can contain negative information for up to seven years, except for bankruptcy filings, which can remain in your file for ten years. You will want to challenge outdated entries as well as incorrect or incomplete information. The credit reporting agency must investigate the accuracy of anything you challenge within 30 days, and either correct it or, if it can’t verify the item, remove it.

 

 

 

For answers to other questions you may have, feel free to visit the other pages listed under the "About bankruptcy" link. It's found at the top of every page on our site.