Declaring bankruptcy is never an easy thing, however it’s the first step towards rebuilding your finances and credit. At Deluca and Associates we are trained chapter 13 and chapter 7 bankruptcy lawyers that can help you during this difficult time and take the first necessary steps towards resolving debt. Check out a few tips for moving on with your life after declaring bankruptcy:
1) Stop With the Guilt Trip
We understand that making the decision to declare bankruptcy takes a toll on your mental and emotional health, and may cause feelings of disappointment and failure to arise. Rather than wallowing in what’s already been done, focus on what you can do to help yourself and your family today. After all, everyone goes through rough times. It’s also reassuring to know that you are hardly the only one experiencing financial troubles–in 2010 U.S. personal bankruptcy filings rose by 9 percent, which translates to 1.53 million filings. A 2011 survey by FindLaw.com found that one in eight adult Americans, or 13 percent of the population, consider filing for bankruptcy. So forget feeling guilty, and forge ahead!
2) Stick With Positive People
As you start the rebuilding process, remember to surround yourself with positive people, including friends, family members and anyone else who will serve as emotional cheerleaders. Along with a solid support system, think about what you’ve learned from this experience and what you’ll do differently from now on.
3) Pay Those Bills!
It follows that paying bills on time and remaining diligent in everything finance-related is imperative following a bankruptcy filing. Create a budget and make it your financial bible. Use it to monitor your spending, ensure all bills are paid on or before their due dates and don’t forget about rent. Whether you pay your rent on time is now being tracked by the credit bureau Experian, and will be reflected on your credit score.
4) Use a Secured Credit Card
Another tip for rebuilding credit is to use a secured credit card. Secured cards work differently in that you deposit an amount of money into a bank account, which acts as your credit limit. Charging small amounts in addition to repaying debts as outlined will help you get your credit back where you want it.
5) Educate Yourself About Bankruptcy
While starting over after filing is hardly a proverbial walk in the park, it also won’t leave you destitute. Be sure to educate yourself about what you can and cannot do after declaring bankruptcy. One myth is that you won’t be able to qualify for a mortgage for 10 years. Another is obtaining a credit card isn’t a possibility for at least seven years–and these are just some examples of false information associated with bankruptcy filing. Get the facts and begin rebuilding your life.
Want to share some advice of your own about life after bankruptcy? Leave a comment with your tips!