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Chapter 7 Bankruptcy: The Day After

Having to deal with the fallout of the day-to-day financial struggle might be over, but what comes next should not be overlooked. Taking the major legal action known as a chapter 7 bankruptcy filing will bring changes to your life and some of them are wonderful. Sometimes, however, you might end up wondering if you made the right decision to file. Read on for some advice on coping with what happens after you've filed bankruptcy and how you can best use the fresh start provided.

Peace and Quiet

The automatic stay works quickly and efficiently and if you don't know what it is you will soon find out. A chapter 7 filing comes with a perk; the ceasing of all bill collection actions against you. The automatic stay is a legal stop sign aimed at all of your creditors that you've listed on your bankruptcy filing. The word goes out to them via the filing but you can also inform them by phone or mail of your filing in case there is a delay. Just provide creditors with your federal filing case number and your bankruptcy lawyer's name and contact info. Needless to say, the peace and quiet will be welcome after months of being hounded by bill collectors.

More Money

You might not be expecting this after trying to stretch your budget to accommodate those high payments, but you no longer need to make another payment to your creditors on most accounts. The burden of paying even the minimum balance is over and you can now use more of your income. There are a few exceptions to this, however, so discuss your bills with your lawyer before you fail to pay. For example, you may wish to continue making payments on an auto loan for a vehicle through something called a reaffirmation.

You Are Not Alone

Feelings of low self-esteem are the other side of the coin. You might feel ostracized and guilty about being unable to pay what you owe. It's common to blame yourself for not being more careful with your finances and having to file for bankruptcy, but you should view the experience as a learning tool and know you are far from alone. Many people are unable to cope with things like high medical bills, expensive vehicle repairs and are unable to live on the income they make. Examine the reasons for your financial mistakes and get some solutions to ensure you never have to file again. You can rebuild your credit and in time your feelings will become more hopeful and positive.

Speak to a bankruptcy attorney to learn more. He or she can better guide you to know how to deal with bankruptcy in your specific situation and in the state that you live in.