Life After Bankruptcy

LaithPersonal bankruptcy generally is considered the debt management option of last resort because the results are long-lasting and far reaching. People who follow the bankruptcy rules receive a discharge - a court order that says they don't have to repay certain debts. However, bankruptcy information (both the date of your filing and the later date of discharge) can stay on your credit report for 10 years, and can make it difficult to obtain credit, buy a home, get life insurance, or sometimes get a job. Still, bankruptcy is a legal procedure that offers a fresh start for people who have gotten into financial difficulty and cannot satisfy their debts.
The recovery process for individuals who have declared bankruptcy can be long and arduous, but it does not have to be debilitating. Here are a few steps you can take to help regain control of your financial situation:
» 1) Maintain a job. If you don’t already have one, it is crucial that you get and maintain a job as soon as possible. Being productive again and maintaining a stable source of income is vital to the recovery process. A stable employment history shows creditors that you are reliable and ensures a more sustainable financial future.
» 2) Act responsibly. Though it may seem obvious, many people who have filed for bankruptcy still fail to take a critical look at their spending habits after their case has ended. Understand where you have invested your money and review your savings and expenditures monthly. Ensure a clean post-bankruptcy credit record by staying current on all of your monthly bills and avoiding high-risk investments. Plan ahead for rainy days and emergencies by setting aside cash reserves or finding adequate insurance to protect your remaining assets and family.
» 3) Rebuild your credit. Reestablishing good credit after filing for bankruptcy is essential in your recovery process. For more information about rebuilding your post-bankruptcy credit score, visit Bankruptcy and Credit.