Everything You Wanted to Know to Make a 2011 Bankruptcy Work for You, Part One. Skip to main content

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Everything You Wanted to Know to Make a 2011 Bankruptcy Work for You, Part One.


Since the real estate reckoning of 2007 launched what would become a global economic meltdown, average Americans just like you have been taking advantage of the sure-fire safe havens of personal bankruptcy. But part of successfully joining the more than 1.5 million people who will file in 2011, is planning for life following the fruition of that bankruptcy.

In fact, with so many people facing income deficiencies due to underemployment or unemployment in 2011, it’s work revisiting the best advice for an effective bankruptcy. Here’s part one of a two-part series exploring the TOP TEN tips for making a 2011 bankruptcy work for you:

(1) Talking Through Your Bankruptcy Tale.

There are fewer taboos to a personal bankruptcy when you consider that most debtors file because of circumstances that were no fault of their own. Whether it be caused by mounting medical costs associated with an unexpected injury or illness; the result of drowning in an underwater home and facing foreclosure; or unsecured debts associated with sudden workplace downsizing or divorce, a bankruptcy filing is a now-ubiquitous part of American financial life, devoid of shame or remorse. Recognize and record the event(s) that brought you here, take responsibility for the past, and take the necessary steps to recover your financial future.

(2) Keep Track of Your Credit Score.

Yes, a bankruptcy filing will impact your credit score. But it’s well worth a look at your current credit rating pre-filing to get a sense of where you are -- and where you’ll be again.. Your score can, and will, only go up from here.

(3) Check Your Credit Report.

Whether you’ve just begun bankruptcy process, been denied credit, are checking up on an identity theft incident, considering buying a home, or any other financial endeavor, it pays to check out your credit report. Why? Because when you’re trying to rebuild your credit health or prove you’re a good credit risk, it’s important to see what others see, namely your credit score. Review all pertinent information and correct any inaccuracies as soon as possible to assure you can put your best foot forward post-bankruptcy.

(4) Show Your Creditors the True Story.

One of the most essential steps in your post-bankruptcy budget is showing creditors that your debt was actually “discharged in bankruptcy.” As it relates to correcting your credit report, for example, make sure your report reflects surrendered property (and not “late payments’) and the like. A record of these discharges makes you more attractive to future lenders and makes life after bankruptcy much easier.

(5) Help with the “Debt Removal” Process.

Like so much garbage on the side of the road, each and every debt is a negative mark on your credit report that can be removed eventually. You, in turn, are responsible for making sure you keep track of when the day will finally come for the so-called trash to be picked up. This could be as short as short as a few years, depending the type of account involved.  For example, a credit card or personal loan account will stay on your report for seven years from the date of last payment or last use of that account. The more time that passes from the original date of the negative mark, the less harmful it is to your future credit score, so get informed on when each account will turn from negative to positive.

For the best results following your bankruptcy, it’s best to proceed with the best legal advice. The bankruptcy attorneys at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their advice. Just call toll free to +1-919-646-2654, or find them online during off hours at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.

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