Vivian Law Firm PLC
496 W. Ann Arbor Trail, Suite 102
Plymouth, MI 48170

Call: 734-446-0340

Life After Bankruptcy- What Happens?

Bankruptcy can provide relief from a wide range of burdensome debts. However, it will also have a significant impact on several areas of your life in the years to come. It can affect employment, banking, insurance and housing. Fortunately, the negative consequences eventually subside and there are ways to completely avoid some of them.

Credit Report

A bankruptcy primarily affects your life because it appears on your record and reduces credit scores. Potential employers, lenders, landlords and insurers often check credit reports before accepting applications. The good news is that they consider older bankruptcies to be less important, and the event vanishes from your record after 7 to 10 years.

Although you're unlikely to locate an insurance company or bank that doesn't check this data, it's not unusual to find bosses and landlords who don't use credit information. Small businesses and nonprofit groups are generally more likely to hire or serve people who have declared bankruptcy in the recent past.


Loans gradually become more accessible after you go bankrupt. You might qualify for a mortgage in one year, but you would pay rather high-interest rates. It takes around three years to get loans with favorable terms. You won't have to wait as long if you can benefit from an FHA mortgage. Likewise, government-backed student loans remain available to citizens who have recently gone bankrupt.

Some people find it difficult to open new checking accounts after bankruptcy, especially when the process discharges unpaid banking fees. It's best to keep an existing account if possible. However, many locally owned banks will continue to let you open a savings account. The same goes for "second chance" checking accounts, but these usually have high fees.

The bottom line is that bankruptcy could result in higher borrowing, banking and insurance costs for several years. You may need to fill out more applications before successfully gaining employment or an apartment. A person can avoid some of these problems by retaining the same job, home and bank account in the years following bankruptcy.

If you or someone you know need a bankruptcy attorney, contact the team at Vivian Law Firm today.

Are you Headed Towards Bankruptcy?

A bankruptcy occurs when one is up to their eyeballs in debt and has essentially lost any potential option to repay their debt. Bankruptcies are a federal matter, as set forth by the U.S. Bankruptcy Code. Bankruptcy A legal process that...

How Long Does It Take to Recover From Bankruptcy?

For most people, the thought of filing for bankruptcy is terrifying because they believe the old myth that it takes 7 years or longer to recover from the damage it does to their credit history. Although it certainly is true that it could take seven...

How Should You Prepare for Bankruptcy?

If you’ve tried and tried to settle your debts, but you just keep sinking further, the best thing to do is to bite the bullet and declare bankruptcy. This process will allow you to either wipe out or restructure your debt, allowing you to...

How to Know When You Should File for Bankruptcy

Drowning in debt may seem like the end of the world but thankfully you have a few different options to relieve yourself from debt. While filing for bankruptcy will alleviate your debt, it is not always the best choice. Many consider filing for...

What Are Bankruptcy Exemptions?

Filing for bankruptcy is never an easy decision to make but sometimes it really is the best option for you. It can be difficult to try to pay back your creditors and you don’t want to lose most of your personal property during the process....

What You Need to Know About Chapter 11 Bankruptcy

The reorganization process under Chapter 11 of the Bankruptcy Code is designed to allow struggling businesses to restructure their finances and maximize the return to their creditors and owners.  This particular chapter usually makes it to the...

4 Ways to Improve Your Credit After Bankruptcy

There is no way around the fact that if you file for bankruptcy, you will see a negative impact on your credit score.  Because of this, it’s important to know exactly how your credit score is being affected. This is significant because...

Is Bankruptcy Your Best Option?

If you find yourself in danger of having your wages garnished or losing your home, you might consider filing for bankruptcy, but how can you be certain that it’s the right way to solve your financial problems? While the advantages of...