What To Do After Your Bankruptcy Is Over
If you are at the beginning stages of making the decision of whether or not you should file for bankruptcy, you may be concerned not only with the bankruptcy process but also what your financial position will be after your bankruptcy is over. If you file for Chapter 7 bankruptcy, many of your debts will be eliminated, giving you a fresh start financially. However, with this fresh start comes challenges as the bankruptcy will remain on your credit for several years making it difficult to obtain credit or make large purchases. If you file for Chapter 13 bankruptcy, your bankruptcy will take years to resolve as you will have created a reorganization repayment plan for your creditors that can take 3 to 5 years to complete. Both of these types of bankruptcies will stay on your credit report for years and can affect your financial freedom and financial health. The following are some excellent guidelines regarding how to rebuild your financial strength and future after bankruptcy.
While there are many reasons a person declares bankruptcy, oftentimes it may be because they had the inability to stick to a financial budget. After a bankruptcy, your credit score will decrease substantially. However, there may be steps you can take to begin rebuilding it immediately. Create a financial budget and live beneath your means. There are online tools to help you establish a budget after bankruptcy that will help you build a strong financial foundation. Unfortunately, some people declare bankruptcy more than once in their lifetimes due to the fact that they do not immediately establish a strict financial budget.
Make sure that one of the things you incorporate into your new financial budget is a savings account. This will add a layer of financial security that can help you in the event of any kind of financial emergency. Building a savings account will help you not only save for items but give you confidence that you can handle any financial emergency that you may encounter in the future.
Secured Credit Card
While it is best to avoid credit cards to make any serious purchases after a bankruptcy, consider applying for a secured credit card. These credit cards are preloaded with money that you deposit. You can then use the credit card like a normal credit card, and build your credit after bankruptcy that will help raise your credit score.
You are allowed to pull your credit scores for free from all three credit reporting agencies once a year. However, consider purchasing a plan where you can examine it any time that you wish. This will help ensure that your credit report is accurate and does not contain any inaccurate information that could decrease your credit score any more than your bankruptcy.
Contact an Experienced Bankruptcy Attorney
If you are considering filing for bankruptcy and are unsure how the process works, or what your financial health will be after a bankruptcy, contact one of our experienced West Palm Beach bankruptcy attorneys today at Kelley Fulton Kaplan & Eller at 561-264-6850 for a consultation.