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In 2017, over 760,000 Americans filed for bankruptcy. Whether you opt to liquidate your assets or create a payment plan for debts, recovering from this financial situation can take time and effort. With this in mind, here are a few recommendations when dealing with bankruptcy. 

4 Tips for Recovering From Bankruptcy

1. Consult an Attorney

Reach out to an experienced law firm that specializes in bankruptcy. By reviewing your assets, debts, and current financial situation with a trained attorney, you’ll be able to craft a plan to transition into a more stable situation. 

2. Review & Monitor Your Credit Score

BankruptcySign up for a free credit monitoring program and pull your current credit report. You’ll need to review the score and outstanding debts to confirm its accuracy. Then, continue to check in and keep a close eye on your credit score moving forward. New loans and credit cards that make it to collections can negatively impact your score and your ability to rent a property or open new accounts in the future, so staying on top of your score is imperative. 

3. Keep Credit Card Balances Low

When funds are low, it’s tempting to max out credit cards. That being said, having high values on your credit cards can negatively impact your credit rating, even if you pay the minimum payments on time. As a general rule of thumb, keep your balance below 30% of your total spending power to properly build up your credit after filing for bankruptcy.  

4. Establish a Budget

Most importantly, work with your attorney and accountant to better understand the root cause of your bankruptcy. Whether it was a bad investment or simply living beyond your means, identifying the issue and setting a monthly budget will help you grow your assets and prevent you from going into bankruptcy again.

 

If you’re a resident in western Wisconsin looking for guidance from a law firm to sort through bankruptcy, contact Arndt Buswell & Thorn S.C. With over 25 years of experience and a reputation for building lasting relationships with clients, you can trust these lawyers with a wide range of legal needs, from estate planning and bankruptcy to divorce proceedings. Visit their website to learn more about their practice areas and commitment to every client, or call (608) 269-1200 today to schedule a consultation.

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