What Happens Once a Chapter 7 Bankruptcy in Hamilton, OH is Discharged?

What Happens Once a Chapter 7 Bankruptcy in Hamilton, OH is Discharged?

One of the advantages of going through a chapter 7 bankruptcy in Hamilton, OH is that it only takes a matter of months to resolve the issue and obtain a discharge from the court. Once the discharge is granted, the debtor is free to start over. Here are some of the things that need to happen once the bankruptcy is a thing of the past.

Sticking to the Budget

As part of the court requirements for filing chapter 7 bankruptcy in Hamilton, OH, the debtor must participate in classes aimed at improving the ability to manage finances effectively. Now is the time to put that information to good use. Even though the debt is gone, it pays to do everything possible to live without relying on credit. To that end, the former debtor needs to have a workable household budget in place. More importantly, the individual must stick to that budget.

This will mean some changes in lifestyle for many people. It will mean planning meals before preparing a grocery list. At the supermarket, there is the need to stick with the list and not yield to impulse buying. Depending on the amount of income that is generated each month, it may be wise to take a bag lunch to work at least three days a week. While it will be difficult at first, learning to live on a cash basis will mean not having to worry about debt.

Rebuilding the Credit Rating

Even while keeping the spending lower than the income, there is the need to begin rebuilding credit. Since creditors know that individuals cannot file a second chapter 7 for several years, many are willing to extend credit as soon as the bankruptcy is discharged. Resist the temptation to open a bunch of accounts. Instead, open one credit card account that comes with the best terms possible. Use it to make a couple of purchases each month, and then pay them off as soon as the next payday rolls around. That will be enough to create a positive entry on the credit reports and begin the process of rebuilding your credit rating.

For anyone facing the possibility of bankruptcy, Visit Dean Snyder Attorney At Law today. It will not take long to determine what type of personal bankruptcy is in the best interests of the client in order to begin the process.

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