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What if I Get Rich After My Bankruptcy?

If a person's debt has been discharged in bankruptcy, getting rich after bankruptcy does not usually change his or her legal obligations. In other words, if a bankruptcy filer's debts have been settled, creditors cannot typically demand further payments.

In fact, bankruptcy is designed to allow people to restart their financial lives. This fresh start may result in new-found financial success for former bankruptcy filers.

To learn more about the effects of getting rich after bankruptcy, consult with a local bankruptcy lawyer for free by filling out the form below.

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What Happens When You Get Rich After Bankruptcy

At the end of Chapter 7 or Chapter 13 bankruptcy, there is a formal recognition that the filer's debts have been discharged. This may occur at different times in different types of bankruptcy, but the discharge often signals the end of a creditor's claim to your money.

Take, for example, the following scenarios:

  • If a person files for Chapter 7 because of medical debts, and the court discharges those debts, the creditor cannot usually demand payment if the person gets rich after bankruptcy.
  • If a person files for Chapter 13 to prevent foreclosure, and eventually pays back his or her mortgage payments, getting rich after bankruptcy does not change her legal rights.

There are some situations in which coming into money could complicate a person's bankruptcy, particularly if the money is acquired while a case is still in progress. In a Chapter 7 case, creditors may be eligible to receive some of the money. In a Chapter 13 case, the new-found wealth may change the filer's monthly payments.

In either type of case, if the money was anticipated before the case was filed, there may be more serious implications, such as the case being dismissed or charges of bankruptcy fraud.

Making Money After Bankruptcy

Achieving financial success after bankruptcy depends on several different factors. First, individuals should make a concerted effort to rebuild their credit scores. This can be partially achieved by taking out small loans and paying them on time.

In addition, getting rich after bankruptcy may require:

  • Setting a strict monthly budget and sticking to it
  • Having realistic expenses
  • Finding paid work immediately after bankruptcy
  • Keeping track of debts
  • Improving financial literacy

Following these steps may help you get a firmer grasp on your finances and lead a productive, happy life. If you get lucky, you may even find yourself wondering what to do when you get rich.

If you have further questions about what to expect after bankruptcy, and if bankruptcy is the right solution for you, connect with an attorney today. Simply use the case review form on this page to take the next step in learning about your debt relief options.

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