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The Road To Recovery After Bankruptcy


Bankruptcy can be a very effective tool for overcoming debt, yet many mistakenly believe that filing for personal bankruptcy can irreparably tarnish one’s future financially. While it is true that one’s credit does take a blow after receiving bankruptcy relief, recovering from the blow is possible with the right approach. As West Palm Beach bankruptcy attorneys, we have guided countless clients down the road of debt recovery, and are here to assist you in your journey as well.

Here are our top two tips for getting back on the right track after filing for a personal bankruptcy.

Start With a Budget

The first step for ensuring your financial future is brighter than your past is to make a change. Creating a thorough budget is an excellent way to stay accountable and avoid reverting back to poor behavior. If you filed under Chapter 13, you are repaying old debts in accordance with a repayment plan, but other expenses will still need to be accounted for. Even if you filed Chapter 7 and the slate has been wiped relatively clean, budgeting is a necessity for staying on the right path. A good budget should account for every penny of your income, noting what is reserved for monthly expenses, savings, an emergency fund, dining, and so on.

Nurture Your Credit Score

Staying on top of your credit score will be a necessity post-bankruptcy, as will be taking the steps to build that score back up. After a personal bankruptcy filing, you can expect to see your score drop initially, though just how much will depend on what your score was pre-filing. You can expect to see a Chapter 7 bankruptcy reflected on your credit report for 10 years after filing, while a Chapter 13 bankruptcy will only be reported for 7 years after.

The key to returning this all-important number to a satisfactory state will lie in seeking out good forms of credit. While immediately getting a credit card may not be advisable, you can consider seeking a card with a small credit limit six months after bankruptcy. Be sure to keep up with payments, and you will see your score start to rise slowly but surely.

If you are considering a personal bankruptcy filing, scheduling a consultation with one of our West Palm Beach bankruptcy attorneys is a good first step to take. Together, we can determine the best option for you and start you down the path to debt relief. Contact our office to schedule a no commitment consultation.

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