Courts must grant struggling companies permission to continue honoring gift
cards after a bankruptcy filing, and even then they are often accepted only for a limited time.
Moreover, your FICO score typically increases
immediately after a bankruptcy filing, as 1/3 of your entire credit score is based upon the outstanding debt which is wiped out with bankruptcy.
But the process can be concluded relatively quickly, and any wages and property you
acquire after the bankruptcy filing, except inheritances, aren't subject to distribution to your creditors.
And while it's true that bankruptcy can stay on your credit for up to 10 years, it's also true that you can begin to seriously bounce back from bankruptcy in just one year or so — as long as you pay all your bills on time and manage your finances
wisely after your bankruptcy filing.
In short, a Chapter 13 repayment plan can silence creditors through an automatic stay and give a person the chance to repay their debts in three to five
years after the bankruptcy filing.
The Bankruptcy Code sweeps up all property of a debtor into a pot for creditors, even property received through inheritance at any time before and up to 180
days after a bankruptcy filing.
After a bankruptcy filing, you have no choice but to start the long slog of rebuilding bad credit.