Filing for bankruptcy can be a difficult decision to make, but it can also provide relief from overwhelming debt. Once the bankruptcy process is complete, it’s time to focus on rebuilding your credit and repaying any remaining debts. In this article, we’ll explore what you need to know about repaying debts after bankruptcy. Understanding Dischargeable vs Non-Dischargeable Debts Before we dive into repayment strategies, it’s important to understand the difference between dischargeable and non-dischargeable debts. In a Chapter 7 bankruptcy filing (the most common type), certain types of debts may be discharged or eliminated entirely such as credit card balances and medical bills. However, not all debts are dischargeable under bankruptcy law. Non-dischargeable debts include things like taxes owed to the government, child support payments, and student loans (with some exceptions). Rebuilding Your Credit One of the first steps in repaying debts after bankruptcy is rebuilding your credit score. This can take time but there are several things you can do to speed up the process: Obtain a secured credit card – these cards require a cash deposit upfront but can help ...
