You are required to take one post-course called debtor education. It is a certificate that needs to be filed with the Bankruptcy Court, and the deadline is typically 60 days from the date of your meeting. If you fail to take that course or if the certificate is not filed with the court, you will not get the discharge. It is essential to complete this second course. I ask my clients to get the course done before the Trustee meeting, so that they don’t forget about it. This certificate can typically be completed in about an hour of your time online.
How Many Years Does A Bankruptcy Stay On A Person’s Or A Business’ Credit Report?
Typically bankruptcy will stay on your credit report for seven to ten years. The bankruptcy notation itself will remain on your credit report for seven years, and the discharge of your debts will stay on your credit report for ten years.
Will I Have To Pay Income Taxes On Any Debts Discharged in A Bankruptcy?
You won’t have to pay income tax on any discharged debts, which is one of the significant benefits of filing bankruptcy. The discharge of your debt is exempt from income taxes. For example, if you settle a debt with a creditor for $20,000 on a $30,000 debt, you may have income tax on the $10,000 that is forgiven, whereas the forgiven debt in bankruptcy is not a taxable event.
How Long After Filing And Completing A Bankruptcy Will I Be Able TO Purchase A Vehicle Or Own A Home Again?
Purchasing a vehicle or owning a home is something about which most of my clients are concerned. Car lenders are anxious to give you a loan for a new car or used car right after bankruptcy. You could potentially buy another vehicle within a couple of months after filing bankruptcy. Purchasing a home typically takes three years after the date of discharge. You will want to work on your credit score after bankruptcy and talk to your bankruptcy attorney about improving your credit score after filing.
Will Having A Bankruptcy On My Record Affect Any Job Opportunities?
It is possible that bankruptcy could affect your job opportunities. Federal law provides that federal employers may not discriminate against individuals that have filed bankruptcy. However, most job nongovernment job applications ask whether you’ve filed bankruptcy. So private employers can take a bankruptcy filing into consideration when reviewing a job applicant, especially for jobs that are associated with the finance industry. A bankruptcy filing should not affect your security clearance. If you are considering filing bankruptcy and you have a security clearance, you should discuss it with your supervisor.
What Are Some Ways People Can Get Back On Their Feet After Completing A Chapter 7 Bankruptcy?
People get back on their feet by starting to save money after filing bankruptcy. The Debtor Education course you take after filing bankruptcy points out some ways to be spend less and save more. Some of the spending habits clients may wish to change are curtailing fast food meals, and making coffee at home rather than spending that $4 for a cup of coffee. That cup of coffee can turn into a $10, $11, or $12 a day purchase, which adds up very quickly. I’ve also seen people get back on their feet by paying their utilities in the budget plan instead of getting hit with a utility bill of hundreds of dollars per month. The other way people get back on their feet is by re-establishing their credit score by getting one or two secured credit cards, making small purchases on those cards, and paying them off every month. Starting to save money now that you are not repaying debt and having a good savings plan will also help establish a solid financial foundation for rebuilding your credit.
For more information on Courses To Take After Completing Bankruptcy, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling (240) 539-9393 today.