Most people can expect to face minor financial setbacks from time to time. Fortunately, recovering from them is fairly easy if you can devise a reasonable budget and stick to it. When it comes to major financial hurdles, on the other hand, regaining your footing may seem impossible. With a little strategic guidance, though, even those who declare bankruptcy or lose their home can come out on the other side stronger than ever. Below, a bankruptcy attorney from Cronin Skilton & Skilton, P.L.L.C in Nashua and Charles City, IA, explains how to get back on your feet after discharging debt or foreclosing on a home. 

Learn From the Past         

There is a stigma surrounding bankruptcy and foreclosure, which only adds to the stress of facing financial challenges. For example, it is not uncommon for those who file to feel guilty and ashamed of their past, which can make it hard for them to move forward. At the end of the day, though, it does not matter why you ended up in the position you were in; all that matters is taking the steps needed to fix it. 

Although it’s important to reflect on past mistakes and learn from them, you should not dwell on them. When it comes to bankruptcy, that means considering why you had to file in the first place. Unless the debt was entirely out of your control—like amassing hefty medical bills, for example—you can then make the commitment to avoid ending up in the same position again. A bankruptcy attorney will tell you this is the single most important step to recovering financially because it will prevent you from falling back into bad habits. 

Plan for the Future 

The greatest concern most people have after declaring bankruptcy or losing their home is the hit their credit score will take. A bankruptcy filing can stay on a credit report for up to ten years, while a foreclosure will be reported for seven; however, by making smart financial choices and sticking to a budget, your credit score should start improving in a matter of months.

For example, obtaining a secured card and paying it off every month is a great way to show lenders you can be a reliable borrower. You should also start a rainy-day fund, which will reduce the need to go into debt when unanticipated expenses arise. Finally, review your credit report periodically to ensure it is accurate, and take the steps needed to remove any discrepancies. 

If you are facing an overwhelming amount of debt or are at risk of losing your home, turn to a bankruptcy attorney at Cronin Skilton & Skilton, P.L.L.C in Nashua and Charles City, IA, to explore the options. Their compassionate team will not pass judgment on your circumstances. Instead, they will use the resources at their disposal to devise a legal strategy that will address all of your concerns. In addition to bankruptcy law, they also help clients resolve issues that fall under personal injury law, estate planning, and tax law. Visit their website to find the office nearest you, or call (641) 435-2462 to talk to a bankruptcy attorney today.