Life After Bankruptcy: 3 Steps for Moving Forward

Have you filed for bankruptcy? Here's what you need to know about moving forward financially.

If you've recently filed for bankruptcy, chances are that you're feeling a bit overwhelmed. You might feel anxious, frustrated, or uncomfortable with the idea that you have dealt with financial drawbacks. Rest assured that no matter why you filed for bankruptcy, you are not alone. Filing for bankruptcy does not mean you are a failure. It does not mean you are financially irresponsible. In fact, for many adults, filing for bankruptcy is one of the most beneficial choices you can make since it ensures that you're able to move forward with your life in a healthy and effective way. After filing for bankruptcy, there are several things you need to know about moving forward.

1. Focus on creating a budget.

One of the most important steps you can take after filing for bankruptcy is to create an effective budget that works for you. The right budget can help you to carefully analyze your expenses, help you eliminate unnecessary spending, and prevent you from falling into the debt trap again. Remember that no good budget is perfect right away. It may take a few weeks or even a few months for you to create a manageable budget that works for you and your family.

2. Seek financial counseling.

In some cases, talking with a financial adviser or taking a financial class can be beneficial. Furthermore, a financial counselor can help you to learn what financial decisions led to you filing for bankruptcy. Speaking with someone can help ensure that you're able to understand exactly how to make the right financial choices as you move forward. They can also offer advice for your specific situation and guidance as to how you can best spend and save as you move forward.

3. Obtain a store credit card.

After you file for bankruptcy, you'll need to start rebuilding your credit. While many adults feel frustrated at the idea of building credit, the truth is that this is quite necessary. Focusing on rebuilding your credit will ensure that lenders look favorably at you. Remember that eventually, your bankruptcy will fall off of your credit report. While you're waiting for this to happen, you can focus on rebuilding your credit score by opening a small line of credit at a store you frequent. Then simply pay off the credit card at regular intervals. Building your credit score can help you as you move on with your life. If you want to take out a loan at some point in the future, whether it be for a house or a car, having a good credit score is essential.

When you're ready to start thinking about filing for bankruptcy, talk to your attorney. The right lawyer will make an incredible difference in your life. Your lawyer will help you to understand exactly what you're getting into. They'll explain the risks and benefits of filing for bankruptcy, and your attorney will discuss which type of bankruptcy might work best for your personal situation. Remember that filing for bankruptcy does not make you a failure. In fact, it ensures that you're able to have a fresh start and to move forward with your life. Get started today. Call to schedule a consultation.