While filing for bankruptcy helps you feel like you can breathe again, there are still some challenges you’ll need to overcome. Two of the biggest problems you will face is that your credit rating will have taken a nose dive and the bankruptcy will show up on your credit report for the next ten years. You also might have a tough time taking out a loan or getting a credit card. Despite these challenges, however, filing for bankruptcy will get creditors off your back and can help you get a fresh financial start.
Rebuild Your Life After Bankruptcy
One of the best things you can do after filing for bankruptcy is start rebuilding your credit right away. This will take some time and patience, but it is completely doable. This of course, means you’re going to have to live on cash for a while. You might think there is no possible way to do this, but many people do it and are very successful at it. In order to have a pay-by-cash-only mentality, it will require you to change the way you think about money. You may also find it helpful to create a budget, which will force you to become more disciplined when it comes to spending.
Some of the best things you can do to help you rebuild your credit and live on cash only include:
- Think about your needs versus wants – you may need to ask yourself what sort of things you can live without including your smartphone, that premium cable package, and eating out on a regular basis.
- Pay your bills on time – this is especially important when trying to rebuild your credit and it will prevent you from having to pay late fees
- Start a savings account – some financial experts recommend putting 20% of your paycheck into your savings account
- Maintain a positive attitude – instead of focusing on the limitations bankruptcy causes, focusing on the fact you are debt free can make this an easier transition
About six months after getting your finances back in order, you should apply for a credit card. Financial experts recommend getting a secured card, that way you can start out with a credit limit that you will be able to afford.
Contact A Bankruptcy Attorney
If you need help at any time during the bankruptcy process, a bankruptcy attorney can be of great benefit. The bankruptcy attorneys at Morgan & Morgan provide exceptional legal services pertaining to bankruptcy in the Athens, Georgia metropolitan area. Contact us today for a free consultation.