You have probably looked into what you must do to complete your Chapter 13 bankruptcy, like composing a repayment plan and making payments to your trustee as your repayment schedule dictates. It is also important to keep in mind the events that will likely take place once you have finished your payments.
Knowing what you can expect once you have wrapped up your bankruptcy can help you plan for a future when you can regain your financial freedom and rebuild your finances. The Nest provides a look into what your post-bankruptcy life may look like.
Finish outstanding court functions
Following the completion of your repayment plan, you will need to attend your discharge hearing or send an attorney to represent you. The judge will determine whether you have met all the requirements of your bankruptcy judgment. If your creditors have no objections, the judge will discharge your case. The court may also send you some paperwork for you to complete.
Receive your tax refunds
A bankruptcy court probably took any state or federal tax refunds you would have received and applied them to your debt payments. However, once you have finished up your bankruptcy, you should once again be able to receive future tax refunds from the federal government or the state government.
Regain your right to apply for credit
Going through Chapter 13 can severely restrict your ability to take on new credit cards or any other form of debt. Once you have finished Chapter 13, you may apply for new credit cards without court permission. Keep in mind that some credit card companies may not take you on following bankruptcy, but you might be able to get a card with a strict limit on it.
Pay off your remaining debt
Chapter 13 does not discharge all debt, so you may still have some debts outstanding that you must take care of. These may include student loans, overdue taxes and penalties, spousal and child support, and fines levied by the court. The good news is that with all the debt you have likely cleared away with Chapter 13, you are free to divert your money towards these mandatory expenses.