Wednesday, August 24, 2022

What Are Your Options After Declaring Bankruptcy?

When you've suffered from financial hardship, bankruptcy can offer relief after you've accumulated a significant amount of debt that you cannot repay.

Although bankruptcy may give you hope for the future, it can still cause you to feel limited. It's important to understand your options after declaring bankruptcy to ensure you can regain control of your finances.

Begin Saving Money

Start saving money in an emergency fund that you can use on a rainy day when you need car repairs or have an unexpected hospital visit. 

The money you save can give you the necessary funds and help you avoid going back into debt. Building a budget will also allow you to determine how to spend each dollar that you own and can avoid overspending.

Hire a Legal Professional

Hire a bankruptcy attorney to navigate the legal process after you file for bankruptcy to avoid mistakes that can affect your future. A legal professional will review the details of your situation and can determine the best chapter to file, depending on the amount of money you owe. 

They will also deal with the creditors that continue to contact you, which can allow you to avoid excess stress and avoid receiving more phone calls in the future.

Build Your Credit

Rebuilding your credit is necessary to increase your borrowing power when you want to purchase a vehicle, home, or open a credit card in the future. 

Increasing your credit score is possible by disputing any discharged debt that isn't accurate on your credit report. You can also pay off new balances on credit cards and monitor your credit report online each month.

Create Financial Goals

Creating financial goals can allow you to improve your financial standing and learn from your past mistakes. It also gives you a realistic timeline for how long it will take to rebuild your financials, such as credit history, wealth, and debt. 

You may want to save enough money for a down payment on a house or go back to school, making it necessary to consider where you want to be in the coming years to ensure you remain motivated and avoid making mistakes with managing your money.

Once you learn about the options available after you declare bankruptcy, it can be easier to discover the right path to take and recover. 

Obtaining assistance from an expert can make it easier to know the correct steps to take and avoid staying in a poor financial situation.

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