Many people have negative preconceived notions about bankruptcy and how it can have long-term effects on your life and your credit score. Well the truth is, that filing for bankruptcy can actually give you clean slate and a fresh start when you need it most. Once all that debt is eliminated, you will then have the means to resume paying the bills and you can prove to creditors that you are a responsible debtor. Once bankruptcy has been filed and your debt has been eliminated, you may be wondering, what now? There are actually several things you can do to help get your life back on track faster and ways to speed up the recovery of your credit score.
After you file for bankruptcy, you should not be left feeling discouraged. Many people would tell you just to get on with your life, but our legal advice would be to take these crucial step towards building a brighter financial future. Here are a few helpful steps to help you get back on track:
- Once your debt is discharged, it is wise to sit down and take a look at your finances so you can create a budget and stick to it. You may have to make changes post-bankruptcy, but now you can actually begin to build up a savings account. With savings at hand, you can prevent yourself from having to take out a loan for surprise emergency expenses.
- Now that the bankruptcy process is over, you can take steps towards rebuilding your credit and being able to get approved for credit. Bankruptcy filers are typically able to obtain credit cards but you will have higher interest rate at first. What you should do is obtain a secure credit card and start making timely monthly payments on it, you can start small and build your way up but always pay off the full amount.
- To avoid slipping back into debt, it is essential that you stay on top of car and home maintenance so that bigger issues do not arise. Make sure that you get frequent oil changes, rotate your tires and check the fluids in your car so that your car does not break down, causing you to spend your emergency funds. The same goes for home maintenance.
- The most important thing to remember after filing for bankruptcy is that you need to pay your monthly bills on time, every time. By paying your bills in a timely manner, your credit score will begin to improve dramatically and you may see a big difference in as few as six months.
- Try to earn extra money on the side on top of a regular income. Even though your debt has been discharged through bankruptcy, having a cash fund stored away could be a lifesaver when you need it most. We always encourage our clients to save for the unexpected, so save, save, save.
- Take advantage of the clean slate that you have been given and use this fresh start as the beginning of your journey to financial freedom.
Here at the Law Office of Jack G. Lezman, P.A. we are dedicated to helping families who are in financial crisis. Our firm have more than 17 years of experience assisting clients with filing for bankruptcy and we have seen families get the fresh start they need and deserve. When you work with our firm you receive the personal attention that your case deserves and we work side by side with you every step of the way. To learn more about the bankruptcy process or how to rebuild your credit score, contact a Charlotte bankruptcy attorney from our firm today!