What Does Life after Bankruptcy Look Like?
Sometimes people come to a moment in life when they cannot make payments anymore. It is easy for major medical expenses or prolonged unemployment to consume a person’s savings. Even with unemployment compensation or part-time employment, you still may not be able to meet the minimum monthly payments on your credit cards or be able to pay your housing and auto expenses.
Unfortunately, this scenario is all too prevalent. In fact, Mark Twain, Walt Disney, and Henry Ford each declared bankruptcy at some point in their lives. If you believe bankruptcy is imminent for you, read on to find out what to expect.
You’ve Filed. Now What?
For individuals who have declared bankruptcy, the recovery process does not have to be difficult.
It is important to stay current on all monthly bills and other costs to keep your post-bankruptcy credit report spotless.
Reconstruct Your Credit.
After Bankruptcy, creating new credit is critical. The good news is that it is not difficult. After Bankruptcy, there will be numerous credit card offers to choose from. This is the beginning. I suggest to every one of my clients that they take 3 credit cards to begin the process of rebuilding their credit.
Most are very surprised when I tell them that two years following filing for bankruptcy, major banks will offer money for a home loan (and yes, I’ve had several clients buy a house two years after filing a Bankruptcy).
Life After Bankruptcy
With your debt gone, you get the needed boost to start over financially. It is a good idea to set and stick to a budget. The money you previously used to pay for credit cards can now be transferred to a savings account. This will go a long way toward helping you start a new life.