A bankruptcy discharge is the consequence of a successful Chapter 7 or Chapter 13 case. In either circumstance, the discharge signifies the conclusion of your case. After a debt discharge, the court will notify all of your creditors that your debts have been satisfied, and they will be required to release you from further responsibility for the debts. Your account will be marked as ""satisfied"" and no longer reflect a delinquent status once your debt balance has been canceled. Once your debts have been discharged, creditors may never again attempt to collect the debt or any remaining balance.
Your Credit Rating
Most individuals fear bankruptcy because they believe it will harm their credit. In reality, your credit score has already taken a significant blow by the time you are eligible to file for bankruptcy. Nonpayment and past-due account balances are the most damaging to your credit. After filing for bankruptcy, the majority of individuals find that their credit improves because they no longer have significant outstanding balances with a negative account standing.
In fact, bankruptcy provides many individuals with a fresh start. Once your debts have been discharged, you are in a position to immediately start rebuilding your credit. It is true that a bankruptcy will be recorded on your credit report, but many people find that their credit rating improves after the past-due account balances are paid. After a few months of responsible payments on new lines of credit, many individuals can rapidly improve their credit score to levels not seen for years.
Your Financial Future
You have a fantastic opportunity to take command of your financial future after filing for bankruptcy. A requirement of the bankruptcy procedure is completion of a debtor education course. This course teaches effective money management techniques, as well as methods to avoid falling into debt. You can easily take control of your finances and develop new behaviors that lead to a debt-free future after completing this course.""
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