Recovering from Bankruptcy

Bankruptcy can be both emotionally and financially stressful, but bankruptcy also offers the hope of a more financially stable future. It is important to look and plan ahead after bankruptcy. If you need assistance filing for or recovering from bankruptcy call your LegalShield provider law firm today.

• Take stock and review what led you to bankruptcy. Develop a realistic budget and review it frequently. Many banks now offer budget tracking apps and tools that allow you to closely monitor spending.
• Look towards building your savings. Many individuals face high debt and ultimately bankruptcy because of unexpected expenses like medical bills. Savings will help protect you from falling into debt due to emergencies.
• Monitor your credit score. Make sure any inaccurate information on your credit report is corrected. Check each year to ensure the accuracy of your credit score. In addition, after 7 years (6 years in Canada), debts associated with your bankruptcy should be removed from your credit report. If you need assistance working with the credit reporting agencies call your LegalShield provider law firm.
• Rebuild your credit score. Build your credit slowly and responsibly. Pay your bills on time. Do not take on new debt right away and avoid predatory lenders at all cost. Predatory lenders may seek out those who have recently filed for bankruptcy, because their ability to file for another bankruptcy is limited. High-interest loans from predatory lenders can lead to financial ruin.
• Stay positive. You are not alone. Many Americans are facing the same financial problems. Stop worrying about the past and start thinking about how to move forward. Don’t be afraid to set goals for the future. Do you want to go back to school or buy a home? Make a plan for the future and think carefully about how you will pay for it. Setting a plan early will give you the opportunity to succeed.