Life After Bankruptcy

Upon successful completion of a bankruptcy proceeding in Arizona, you will be granted a new start. You can go about your days enjoying the feeling of being free of debt and rebuilding your finances. However, there are some issues you should be prepared for and our Phoenix bankruptcy lawyers can help you identify the ones that pertain to your specific case.


Credit standing is one of the most interesting parts of filing for bankruptcy. While in the long run you will be able to enjoy renewed credit, initially your credit score will be affected by the filing. It may go down and in some cases, it can go up. Either way, be prepared to be seen as more of a risk when applying for loans or rentals for a while, but know that the situation is only temporary.

The bankruptcy will be entirely eliminated from your credit in seven to ten years, but you can being rebuilding your credit right away. The best way to do this varies widely, so it may be a good idea to seek out credit counseling when embarking on the path to great credit. Your bankruptcy attorney, as well as credit counselors, can assess your finances and give you advice on how to make your spending and investments work hardest to establish a high credit score.


If you have filed for any sort of bankruptcy, a shift in spending priorities is most likely a positive by-product of the process.  Under Chapter 13, you will be required to make court-mandated payments to eliminate your debts over the course of three to five years. This could encourage minimizing your overall spending to efficiently manage costs, and allow enough resources to make your payments, good tools to have in your financial toolbox!!

If you filed for Chapter 7 bankruptcy in Arizona, there will be no payment plan, and you will walk out of the process with no debt.  As such, this will be a good opportunity to learn to work using cash, rather than credit, when dealing with your everyday expenditures. This also means hands on budgeting skills training, while your credit recovers. An accomplished Phoenix bankruptcy lawyer will be able to further explain the differences between filing Chapter 7 or Chapter 13 and the financial impact either would have on your life.


After a bankruptcy, it is a good idea to begin working immediately to rebuild your financial standing. There are multiple ways this can be accomplished, and most of them are relatively simple. One way is to demonstrate you have moved past your previous financial mistakes. Be sure to make all payments on time, do not accrue additional debt, and begin a savings fund for unanticipated costs.

A bankruptcy can be a financial challenge, but it is by no means insurmountable. Lenders and credit card companies will begin to see you as a good investment if your post-bankruptcy behavior has been pristine. Lenders are only human, and a bankruptcy is far from an unforgivable offense if you take steps to continually improve your financial state.


There can be side effects you may not anticipate when emerging from bankruptcy in Arizona, but it is a good idea to be prepared for them in case they occur. One of these side effects can be an impact to your insurance policies and premiums. Since your credit score touches many areas of your daily life, it is possible that filing for bankruptcy could influence the amount of insurance premium you pay. A knowledgeable bankruptcy attorney can help you understand this possibility and any real implications resulting from it.

Contact us if you have questions about how bankruptcy can affect you life, during and after  filing.  One of our experienced Phoenix bankruptcy attorneys will be happy to assist you.