Many people who are considering filing for bankruptcy in Ohio have read about what bankruptcy can do for them in the long term. After completing the whole bankruptcy process, most of your debts will probably be wiped clean, and you can then start the process of rebuilding your credit. But what happens immediately after you file the initial Chapter 7 or Chapter 13 bankruptcy paperwork?
You are assigned a bankruptcy trustee
As soon as you file for bankruptcy, you will be assigned a bankruptcy case number and a bankruptcy trustee. Your bankruptcy trustee is the official who will be overseeing your case until it’s over. This person is appointed by the United States Trustee to act as a representative for your estate during your entire bankruptcy case. Your bankruptcy trustee will:
- Review your bankruptcy forms
- Request documentation
- Verify information
- Conduct a meeting of creditors
- Oversee the liquidation of assets
Creditors stop contacting you
The days immediately following your bankruptcy filing can bring a welcomed silence. Creditors are not allowed to contact you to pursue repayments on debts, thanks to the automatic stay that goes into effect as soon as a bankruptcy case is filed. This means that calls from creditors stop, foreclosures stop and wage garnishments are no longer an issue.
Your credit score will drop by about 100-200 points
Everyone knows that a bankruptcy filing can have a negative impact on your credit score, but the drop may not be as bad as you expect. While most people should anticipate a drop of about 100-200 points, every case is different. If you already had terrible credit before filing for bankruptcy, for example, bankruptcy may have very little impact on your score. About 1-2 years after your bankruptcy filing you may start to see some significant improvement in your credit score.
