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So, you’ve decided to file for bankruptcy. Congratulations! We’re sure that was a difficult decision, but we’re also happy you took your first step toward financial freedom. With a Chapter 7 bankruptcy in Omaha (and across the Cornhusker state), most of your debt (minus things like student loans) will be wiped out by the court.
However, there are several other things you should be on the lookout for after filing so that you’re not caught off guard.
7 Things to Do After Filing a Chapter 7 Bankruptcy
After filing a Chapter 7 bankruptcy in Imaha, remember that:
- Your automatic payments for car and home loans will be cancelled.
- A Chapter 7 will protect you with something called the “automatic stay,” which is a law that protects you from creditors attempting to collect debt from you.
- That means they won’t accept automatic payments directly from your bank account anymore, and the automatic payments will be stopped before your next paycheck. Take note of this (with your phone or planner) and set up a new way to pay your car or home loan.
- You can:
- Make your payment by check.
- Pay the bank in person.
- Sign up for monthly bill pay at the bank you have your checking account.
- We realize this is an added inconvenience, but your creditor does this to avoid legal problems for themselves.
- Your payments to your home and auto creditors still need to be paid, on time, every month, to keep the collateral.
- Confirm with the creditor to make sure the payment has been made each time.
- Keep a paper trail (cancelled check, bank statement, etc.) of those payments.
- This also includes any furniture leases or purchases from Nebraska Furniture Mart.
- Maintain adequate insurance on the house or car and be prepared to show proof of insurance to the creditors.
- Your bank may want to speak with your attorney.
- Because of the automatic stay, some creditors will require your attorney’s permission before they’ll talk to you about your loan.
- If that happens, contact our office and we will give them permission to speak with you.
- Your credit cards will be closed.
- All your credit cards—even the ones with $0 balance—will be closed to prevent any additional losses to the credit card company.
- All your credit cards—even the ones with $0 balance—will be closed to prevent any additional losses to the credit card company.
- Your lines of credit will be cancelled.
- This is so the bank can protect itself from further losses.
- This is so the bank can protect itself from further losses.
- You’ll still receive bills from your creditors—at least for a bit.
- That doesn’t mean you have to pay them. Although creditors are prevented from trying to collect money from you once you file bankruptcy, you’ll probably still receive some bills in the mail for a while. The court sends out a notice to each of your creditors after you file, and it can take your creditors a few weeks to process the notice.
- If you do get bills from creditors a month or more after filing, send them to our office so we can give them another notice.
- You’re 2nd debtors education class is already paid for
- You will receive advertisements in the mail from other companies that will charge you if you use their post filing debtors education course. This has already been paid for with your attorney fees. You will use CIN/MyHorizon, the same one you used for the first course.
- If you need the information to access your 2nd course, call your case manager and we will resend it to you.
Contact Our Omaha Bankrupcty Attorney for Further Assistance
That might seem like a lot to think about, but taking this step toward financial freedom and security will ultimately take more stress off your mind and leave you with time to think about what really matters: your friends, your family, and your new future. Good luck!
If you have more questions or are wondering if a chapter 7 bankruptcy is right for you, contact our Omaha bankruptcy attorney at Steffens Law Office online or give us a call at (308) 872-8327.