Filing for bankruptcy is a very overwhelming and stressful process, mainly because it's hard to anticipate what is going to happen next. You're likely filing bankruptcy for the very first time, which means the whole process is new and confusing to you. That's why it helps to know what happens after you file for Chapter 7 bankruptcy.

The Automatic Stay

A huge benefit of filing for bankruptcy is that you will receive an automatic stay from the bankruptcy court. This happens right after filing the bankruptcy petition, and it will prevent your creditors from collecting your debts. They will not be allowed to contact you anymore while you work through the bankruptcy preceding. 

The 341 Meeting

The next big step is the 341 meeting, which is also known as the meeting of creditors. This is when the bankruptcy trustee appointed to your case will review all of the paperwork regarding why you are filing for bankruptcy and your current financial situation. While creditors can attend the meeting, they don't typically show up. The meeting is fairly quick and straightforward since it's a formal part of the bankruptcy filing

The Financial Education

You will be required to go through financial education as part of the bankruptcy filing. This includes taking a credit counseling course, which you must complete before bankruptcy will be approved. Thankfully, these courses can be completed online or even over the phone, and it will take you a couple of hours to complete. 

The Discharge Of Debts

If everything has gone smoothly so far during the bankruptcy filing, the next step will be the discharge of your debts. Chapter 7 bankruptcy does not require you to pay back most of your debts once the bankruptcy is approved. Things like credit card bills, personal loans, medical bills, and most unsecured debts will be completely wiped away. However, some debts cannot be discharged, such as support payments to a spouse or child, student loans, and some court judgments. 

The Impact On Your Credit Score

Your credit score is going to take a big hit as a result of your bankruptcy filing, and it will take several years for it to completely go away. During that time, you'll find that it will be difficult to borrow money due to being seen as a high risk. If you do borrow money, interest rates may be higher than normal to compensate for your low credit score. Thankfully, there are ways to start building your credit back over time. 

To find out more, consult a Chapter 7 bankruptcy attorney.