Once you decide to file for Chapter 7 bankruptcy, it’s important to turn your attention to the process itself and what will happen in the future.
Your life will change in many ways as the result of a Chapter 7 bankruptcy. For example, you may be left with some types of debt, such as:
- Tax debt
- Student loans
- Child support
- Spousal support
- Debts for personal injury
- Penalties and fines associated with a violation of the law
There are some exceptions to these rules. For example, the bankruptcy court may discharge your tax debt if you meet the following requirements:
- The taxes are classified as income taxes
- You did not commit any type of tax crime
- The tax debt is less than three years old
- You have filed a tax return with the appropriate agency
- The debt has not yet been assessed or has been assessed by the IRS at least 240 days prior to your bankruptcy filing
Since a Chapter 7 bankruptcy will remain on your credit report for 10 years, you should expect to run into challenges when applying for a loan. However, there are steps you can take to slowly rebuild your credit score. It takes time and effort, but you don’t have to wait 10 years to see progress.
Don’t get so caught up in the process of filing for Chapter 7 bankruptcy that you overlook the impact it’ll have on your life in the future.
When you prepare accordingly, you’ll find yourself in a better position to take full advantage of the many benefits associated with a bankruptcy filing.