What Will You Do With Your Bankruptcy Discharge?

Your new financial life really starts with the bankruptcy filing.

Filing  immediately stops your creditors from collection and gives you a chance to rethink and reset, starting the day you file.

But that new financial life is  symbolically capped with the court order that discharges you from personal responsibility for your dischargeable debts.

The discharge order, which comes within a couple of months of filing a Chapter 7 or at the completion of your Chapter 13 plan, is the cherry on top that tells the world that your debts are behind you.

What next?

There’s no universal take-away from bankruptcy.  Each person got to the point that bankruptcy made sense a bit differently.

If a divorce triggered the need for financial relief, there’s no point in saying choose a spouse more wisely next time.  If job loss was the catalyst, it’s hard to resolve to stay employed.

But just like New Years, filing can be a moment for thought about  new beginnings.

Some ideas for life after bankruptcy:

  • Simplify.
  • Live beneath your means.
  • Plan for financial downturns.
  • Talk with your partner and your kids more openly about money.
  • Provide, now, for your retirement.

Bankruptcy in the U.S. is a real legal treasure.  It recognizes that as a society, we benefit  from the renewed energy and hope that comes with a fresh start.

Think about what you can make of a new financial life.

Check out 8 Things To Do After Your Discharge.


Image courtesy of ihasb33r.

About the Author
Northern California bankruptcy lawyer Cathy is a 30+ year veteran of bankruptcy practice in the Silicon Valley. She is known for energetic representation of clients and her command of bankruptcy law.