What Life Is Like Post Bankruptcy? Important Tips
If you wonder what your life will look like after bankruptcy, you have come to the right place. Filing for bankruptcy is similar to hitting the financial equivalent of rock bottom. Bankruptcy may wipe out your old debt, but it will stay on your credit report for between 7 to 10 years.
In fact, bankruptcy will definitely hurt your long-term chances of qualifying for mortgages and other credits. This article provides information on what your life will look like post-bankruptcy.
You Have Filed For Bankruptcy, Now What?
Once you file for bankruptcy, the recovery process can be long and difficult at times. Once you file for bankruptcy, the courts will appoint a bankruptcy trustee to meet with your creditors and inform them of the bankruptcy. Even though you will be allowed to keep your vehicle, furniture, and personal belongings up to a certain value, any nonexempt assets that you have must be liquidated. Applying for credit of any kind will be somewhat difficult for the next few years.
There is a possibility of regaining a better credit score & qualifying for some types of credit only after a year from the date of bankruptcy. A Chapter 7 bankruptcy may remain on your credit report for 10 years while a Chapter 13 bankruptcy will remain for 7 years. There are many steps that you can take to regain control of your situation.
Important Tips For Life Post-Bankruptcy
- Maintain a job and a home
- Start rebuilding your credit
- Pay your bills on time
- Monitor your credit reports
Maintain A Job And A Home
The most important thing is to get a job and keep it – in case you don’t have one already. Having a good place to live is another important tip to consider post-bankruptcy. In fact, a stable job and residential history are crucial to securing credit from lenders in the future. They show creditors that you are reliable. Landlords and employers may request credit references when you try to secure employment and a place to live post-bankruptcy.
Start Rebuilding Your Credit
Rebuilding your credit is another important step to take soon after declaring bankruptcy. After going through bankruptcy, the last thing you want is for history to repeat itself. Try to establish good financial habits by saving money in whatever way you can. Maintain a savings account that you can access during financial emergencies. Keep track of your day-to-day spending so that you can prevent your spending from getting out of control.
Pay Your Bills On Time
Staying current on all your monthly bills and other payments is another important tip. That way your post-bankruptcy credit record will stay clean. Never let your expenses build beyond what you can afford to cover.
Monitor Your Credit Reports
You should monitor your credit reports diligently and regularly after going through bankruptcy. Make sure that all information appearing in your profile is correct and up to date. Incorrect information may lower your credit score and affect your financial credibility.
If you are having problems with declaring bankruptcy and require professional assistance, call W. Ron Adams Law in Erlanger, KY right now.
