The decision to file for bankruptcy is a major one that inevitably leads to both a much-needed financial re-start and some new challenges to navigate. However, it's essential to understand that bankruptcy is in no way a sign of weakness or failure, and anyone can bounce back after filing. It will take some time, patience, and proactive steps, but you will soon be back on firmer financial footing and enjoying the benefits of a life free from the stresses of unmanageable debt. Below are a few things to expect.

Your Credit Will Take a Hit—But It's Not Permanent

Whether you file for Chapter 7 or Chapter 13 bankruptcy, your credit will initially take a dip. In general, the higher a credit score is before filing, the more significant the drop in numbers. Also, a bankruptcy stays on a credit report for up to 10 years, but neither of these outcomes is permanent. You can take measures to start rebuilding your credit right away after filing, and this will help strengthen a credit score from the start of the process. In the first few months, getting approved for a new credit card may be difficult but not impossible; be aware of high interest rates and finance charges. A better option would be to open a secured credit card, which operates like a debit account, in which you prepay a balance and spend from that amount.

Implement What You've Learned

As part of filing bankruptcy, you will typically have to take a credit counseling course. This is crucial to the process as it helps a filer see where they've made missteps in the past and how they can avoid them moving forward. The course is brief, but it contains valuable information. Take notes, review your past errors, and commit to better financial choices in the future. Most credit counseling courses will teach you how to budget, how to manage bills and prevent new debts, and how to save. Try to implement these practices as much as possible.

Make It a Priority to Pay Bills on Time

One of the best ways to maintain your now-solid financial footing is to stay on top of all bills. Don't charge more than you can pay off at the end of the month, and pay all balances in full with each new statement. Pay all other bills, including rent, utilities, and student loans, on time or early. Also, don't avoid credit. Just because you've had bad experiences in the past doesn't mean you'll have bad experiences in the future. Open new lines of credit as needed—be sure you can afford what you're purchasing and can quickly pay all balances in full at the end of the month.

If you're considering bankruptcy, trust Mark Briden Law. Attorney Briden has been serving the Shasta County, CA, region since 1987. He will take an individualized approach to your case and ensure that you are filing for the correct type of bankruptcy and will help guide you through the post-filing ups and downs.  He offers free phone or in-office consultations and convenient payment plans. Call (530) 222-1664 or visit his website to schedule.