If you are considering filing for Chapter 7 bankruptcy, you probably are wondering what your finances will look like while your case is pending. It is important to have this discussion with your attorney before you file your case, but Chapter 7 handles your past debts and does not prohibit you from incurring new or future debts. The smartest strategy is to thoroughly discuss your finances with your attorney and obtain his/her advice before you incur post-filing debt.
Prior to filing your Chapter 7, you should stop using your credit cards. Once your case is filed, your existing credit card debt is eligible for discharge. It is only eliminated, however, when your discharge order is entered. Thus, most individuals do not secure a new credit card during or immediately after their filing. While you may have some difficulty in finding a lender to issue a credit card during this period, it can be done. Many individuals begin with a secured credit card to establish their credit again, then move to traditional credit cards when available.
Similarly, if you are hoping to purchase a new home or vehicle after emerging from your Chapter 7, you are legally able to do so. The problem may be locating a bank or other lender willing to extend credit to you or that will do so without charging you an extremely high interest rate. Again, with time and patience, you can rebuild your credit and qualify for these types of loans quicker than you might think.
If you have questions regarding filing a Chapter 7 bankruptcy or how your finances will work during or immediately following your case, contact the legal team at DeLadurantey Law Office to learn more.
Contact The “Milwaukee Bankruptcy Attorneys,” DeLadurantey Law Office, LLC for all your Chapter 7 and Chapter 13 bankruptcy needs. Whether you need debt negotiations or debt relief, or even foreclosure defense, DeLadurantey Law Office will handle bankruptcy matters for the following locations – Milwaukee, South Milwaukee, West Milwaukee, Waukesha City, Waukesha Town, Kenosha, Racine, and all other municipalities in Milwaukee County, Waukesha County, Kenosha County, and Racine County. DeLadurantey Law Office, LLC can be contacted by phone at (414) 377-0518.