Highly Seasoned Legal Professionals

Living your best life after filing for bankruptcy

On Behalf of | Jun 29, 2018 | bankruptcy |

The decision to file for bankruptcy often feels like one of the biggest decisions in your life. As you move through the process, you will soon find that the financial stability is freeing in a way. Whether you are living through a Chapter 13 that requires you to make payments to the trustee or had to deal with a Chapter 7 that liquidated your assets, you are probably looking forward to the day when you can start to rebuild your credit.

The life that you live after bankruptcy will be much different than before. For one thing, you will have to rebuild your credit. This usually requires that you start off with a less desirable credit card that has small limits and higher interest. As time progresses and you make the payments on time, your credit limit might increase. Eventually, your credit will be good, but only if you are paying the bills on time.

One good thing about trying to get your finances on track with bankruptcy is that you will have to go through education courses that help you to learn how to use credit wisely and budget your money. These can make your new life much easier since you will have the tools you need to be financially responsible.

You need to plan to live on your income only during the bankruptcy because you can’t obtain new credit, no matter how small, until the court approves of the new lines of credit. This likely won’t happen so plan to cut back on the expenses you have until the bankruptcy is over.