Filing and declaring bankruptcy might make you feel stuck and have been pushed to ZERO financially. We comprehend how tough it is to get back on the right track and keep yourself motivated to start over again.
Though bankruptcy eliminates your debts, it remains on your credit report for the next 7 – 10 years, making it more challenging to obtain a mortgage or other types of credit. However, if you work with a qualified and professional bankruptcy attorney, you can surely recover and plan your life after bankruptcy.
How to cope with life after bankruptcy?
Everything is very challenging after bankruptcy, from money management to re-establishing the credit report and restoring your financial status and reputation. But it is possible to revert financially after bankruptcy.
We comprehend everyone makes mistakes. It’s also true that unpleasant events happen to everyone at one time or another. Whether you did a chapter 7 bankruptcy or chapter 13 bankruptcy, we are here to assist you with the most reliable legal services.
This article includes information about what to do after filing bankruptcy, recovery from financial loss, and answers to the questions that you might have in mind.
What Should Be Your Next Initiatives After Filing for Bankruptcy?
It is normal to seek an everyday life after bankruptcy. It is vital to rebuilding a stable financial situation to get yourself back on track. Here are a few thoughts you might want to know about:
Store All Paperwork from Your Bankruptcy Case
Even if you think it is unimportant, save all your documents and essential papers from bankruptcy. Sometimes, lenders ask for bankruptcy papers, specifically when you are applying for financial items or loans.
In addition, it is also better to have all your papers with you if creditors ask about particular debt in the future. Moreover, it is also essential if the creditor asks you for the debt you might have thought dismissed in the bankruptcy case.
Build Your Budget and Save Money
The last thing you might want to experience is making the same mistakes again. To avoid such a situation, open a savings bank account and practice your best to build a stable financial position.
Set a budget to manage your expenses and minimize the chances of accumulating debts. The ability to control financial aspects is crucial; try saving money and building financial habits.
Recovering from Bankruptcy: How to Do it?
For your ease, we have included some of the basic steps to help you in the recovery proves from bankruptcy:
Home and Work Life
Getting one as soon as possible is vital if you don’t have a job. The second, most important factor is getting a place to live. Job histories and stable housing are essential since they explain to creditors that you are reliable.
Furthermore, credit checks are getting more popular with creditors these days to analyze trustworthy lenders. Sometimes, business owners also ask for credit reports to examine the credibility of the job. Do whatever it takes to put the after-effects of bankruptcy behind you.
Make an Emergency Funds
To face any unforeseen situation or tragic condition, make an emergency fund so that you can withdraw from it in such a situation. Even if you save a small amount of money monthly, do it.
These contributions will eventually become more extensive and will be your rescue plan in a difficult situation. Here are some practical options for your emergency fund:
- A savings account in an online bank is a good option as they offer higher interest rates than traditional banks.
- High-yield savings account that offers high interest in your account balance.
On-Time Payments
After bankruptcy, paying all your bills and obligations on time is critical to keep your credit record clean. This section has no tolerance, even for a bit of negligence. Therefore, keep a close eye on your debts; they should not exceed your financial limitations.
Keep an Eye on Your Bank Balance
It is also essential to open and keep a savings and checking account. Creating a new checking account might be difficult if you have a charged-off credit history.
However, many banks offer a second chance for persons in this scenario – which is excellent news. Maintaining a safe and positive total in your account will signal to your creditors and businesses that you have a constant cash flow.
Focus on Positive Self Improvement and Build a Better Life
So, why not focus on the positive aspects of your bankruptcy while learning from it and becoming a better person? For instance, think about what you’re learning from the decisions and events leading up to your bankruptcy. Amazingly, these are lessons you can take away to improve the rest of your life.
Yes, bankruptcy is all about rebuilding your life. That’s why we work hard to help you bounce back and create a new and better beginning while rebuilding your life. That’s the ULTIMATE GOAL of our office.
So, don’t just lash out and blame the system; instead, turn inward to learn and reflect on how to be successful financially and in relationships. Unfortunately, some bankruptcy and divorce clients go into a phase of repeating the same habits that only create the same problems over again. Don’t do that. Instead, research and learn as much as possible about what you’re going through. And always do it with an attitude of gratitude for the best results.
Mortgage and Car Loan Help
Purchasing an enormous debt like a house or a car, you might need a consigner like your parents. You probably cannot finance if you don’t have a co-signer. Depending on your co-signer’s credit scores and condition, you can purchase anything in fair conditions on a personal loan.
However, if you are buying a car, there is a different issue. Insurance providers are sometimes unwilling or hesitant to cover your expenses if you have filed for bankruptcy. If you are at higher risks as per your credit report, the auto insurance will provide you services at higher costs – still, you will be able to drive, though.
Navigating the Credit Landscape: Credit Bureaus and Reporting Agencies
You might be wondering, “Who’s keeping tabs on my financial history?” Well, credit bureaus and credit reporting agencies are the ones. These organizations collect and maintain records of your credit activities. After bankruptcy, it’s crucial to understand how these entities operate. Why? Because they’re the ones who’ll be updating your credit report, which plays a significant role in your financial recovery.
You can request a free annual credit report from major credit bureaus like Equifax, Experian, and TransUnion. Regularly checking your credit report helps you spot any inaccuracies and take corrective action. Remember, a clean credit report is your ticket to rebuilding credit effectively.
The Role of Debt Collectors in Your Financial Recovery
Debt collectors might still contact you even after your bankruptcy case closes. It’s essential to know your rights and how to deal with them. If a debt collector contacts you for a debt discharged in bankruptcy, you can report them. Keep all your bankruptcy paperwork handy for such instances. It’s not just about dodging calls; it’s about standing your ground and knowing the law.
Secured Credit Cards: Your Stepping Stone to Rebuilding Credit
Rebuilding credit after bankruptcy might seem like climbing Everest, but it’s more doable than you think. One of the most effective ways is through a secured credit card. Unlike regular credit cards, a secured card requires a cash deposit as collateral. Credit card companies view this as a low-risk way to extend you credit. Over time, responsible use of a secured card can help improve your credit score.
Keep an Eye on Your Credit Score
Monitoring your credit score is like checking your pulse in financial recovery. Various apps and services can help you keep track. Why is this important? Because a good credit score can make your life easier in so many ways, from lower interest rates to better terms on loans. So, make it a habit to check your score regularly.
Self-Help Bankruptcy Resources from Nick Thompson
One of the best things to realize is that the experiences of divorce, bankruptcy, and other unpleasant events are perfect ways to learn about gratitude. Of course, that’s in opposition to the fear and panic that sets in for many people. Focusing on the positive aspects of what you’re going through is an excellent step in the right direction. For one reason, it allows you to see your processes through to the conclusion without excessive stress and trauma.
I’ve read many studies that show how some people thrive in the face of adversity while others get stuck in defeat. The latter is, of course, straightforward to do. So, it’s up to each individual to take steps to see the silver lining in every situation.
I believe that people who thrive in the face of adversity do ONE THING fundamentally “different” from those who give in to defeat. Instead of giving up, they embrace it and look for the silver lining! The same principles apply to whether someone has cancer or is wrongfully going to prison. They are both horrible situations to go through, but people still have to deal with them—either positively or negatively.
Frequently Asked Questions
When Can I Buy a Car After Bankruptcy?
You can buy a car after bankruptcy but with high-interest rates and penalties. However, saving money to get a secondhand car or using a co-signer option for purchasing a car can be a good option.
How Much Time Will it Take to Get a Mortgage After Bankruptcy?
Whether you have filed for Chapter 7 or 13 bankruptcy, it is tricky to obtain a mortgage; depending on the type of bankruptcy and mortgage loan, usually, you might have to wait for 3 years.
2 years after a chapter 7 bankruptcy discharge and 1 year after a chapter 13 bankruptcy discharge, VA and FHA home loans are generally accessible.
After Bankruptcy, Can I Secure a Job?
No government authorities and representatives can refuse to give you a job if you are bankrupt. However, due to solid reasons, private companies might refuse to hire you because of this reason.
Sometimes, bankruptcy might cause difficulty in getting a job related to financial data like accounting, bookkeeping, payroll, etc.
It is Essential to Seek Professional Legal Assistance!
Suppose you are depressed and want to explore and obtain available options about what you can do after bankruptcy to improve your financial position and live a stable lifestyle. In that case, we are here to provide you assistance with the best professional and legal advice.
Speak to us about your concerns and know the answers to all your questions. You can also explore your solutions here to learn how to improve your life after bankruptcy.
Resources for Bankruptcy
Getting Started with Your Bankruptcy
Louisville Kentucky Bankruptcy Forms
Getting Your Fresh Start Through Bankruptcy
Your Fresh Start on a New Budget with Bankruptcy
Nick Thompson – Kentucky Foreclosure & Bankruptcy Attorney
If you are considering bankruptcy, don’t delay because timing is crucial. I am here to help you. So, contact my office right away to start the conversation. Nick C. Thompson, Bankruptcy Lawyer: 502-625-0905.
