You’re not alone. If you’re like the millions of Americans who file bankruptcy every year, there is hope. Life after bankruptcy is different, difficult, but definitely possible. The bottom line is your life will heal. With a little perseverance and even more patience, your credit will heal. Continue reading to learn the tips and tricks for moving on, how to pick up the pieces, and what life holds next.
Does life after personal bankruptcy get better?
Bankruptcy affects more than your financial well being, it affects your emotions, but it does get better. Almost all attorneys will provide a shoulder to cry on. They’ve been there before and will be your crutch to a new life. In addition to your attorney, the reading and resources are available. There is financial counseling, books, and professionals that will provide all the help you need to ensure it will get better. That means you will be able to qualify for that new auto loan, you will be able to get that new phone, and you will be a homeowner one day. All it takes is time.
Tips for moving on
Start a new budget. Chances are not having one, or not having the right one is what got you here in the first place. Filing for bankruptcy may be a fresh start, but it is a once in a lifetime start. You will be required to take financial education courses during your bankruptcy process. These will advise you how and what kind of budget to create. On top of creating your new budget, be sure to check it weekly in order to see where you stand. A new budget it the path to a new life after bankruptcy.
Consider new credit. After filing for bankruptcy credit cards will continue to be offered to you. This is a good thing. At one point, you will want to consider rebuilding new credit. Take your time but understand that new credit is in your future. It is recommended that you start with small credit and habitually pay your debt back on time. This will show future creditors that you have the ability to pay back your debt; aka you’ve learns from your bankruptcy.
Open a savings account. A savings account falls right in line with a new budget. Start with $5- $10 and put money in weekly. Even if only $5 a week, you’d be surprised by how quickly a savings account can give you a little boost. Keep it mind that a savings account is meant for saving. Vow to yourself that you will not spend it. If ever there comes a time that you do need to withdraw your savings (like in an emergency) be sure to pay it back, even double it if you can.
Don’t blame yourself. In fact, most people who file for bankruptcy are actually not deemed irresponsible. Those who file and qualify for bankruptcy have most often come in to realistic financial hardship, so give yourself a break. Once you have filed, the process is over with so there is no reason to continue to blame yourself.
Picking up the pieces
Picking up the pieces is as simple as literally picking up the documents that you receive from your bankruptcy. You will receive a 40-50-page packet with detailed information including financial education certifications, times and deadlines, and your discharge ordered by the judge. This will help you establish new credit as well because creditors will use these documents to evaluate whether you qualify for new credit or not.
What to expect…
The bottom line is that life after bankruptcy will require some effort from you, but if you take all the required steps, there can be a bright future. The most important part is that you learn from your bankruptcy. One bankruptcy case can be forgiven, but multiple cases can be construed as irresponsible. Bankruptcy is not a red mark on your record forever, with time your slate can be wiped clean.
You will find the bankruptcy attorneys at Hines Law compassionate and skilled at understanding the realities common to debt relief. We provide clear and practical advice so that our clients capture the best the legal system can offer. We specialize in Chapter 7 and Chapter 13 bankruptcy cases and represent clients throughout the state of Massachusetts. Find out if personal bankruptcy is the right choice for you, call us for a Free Consultation!