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While bankruptcy remains on your credit report for several years, you can speed up your financial recovery substantially by proceeding cautiously and taking a few proactive steps. Figuring out your bankruptcy plan can make all the difference in your financial recovery time after declaring bankruptcy. You should also be sure to contact a bankruptcy attorney if you need help with any of these steps. Below, learn what steps you should take to regain your financial freedom. 

How to Financially Recover From a Bankruptcy

1. Think Before You Borrow Money

Lenders tend to target those who have recently declared bankruptcy to advertise high-interest, credit-building loans. It can be tempting to apply for one right away, but this isn’t always a smart financial decision. Your bankruptcy attorney often has a list of companies with fair interest rates from which to borrow.

2. Sign up for a Secured Credit Card

bankruptcy attorneyIf you don’t need a loan right away, a secured credit card can be a much better way to start rebuilding your credit after bankruptcy. These cards require a deposit, which becomes your credit limit and prevents you from overspending and getting back into financial trouble. Keep in mind that any late payments will cause your credit score to be penalized. Only borrow money if you can truly afford to pay it back. Ask if your bankruptcy attorney has any advice about secured credit cards.

3. Check Your Credit Report

Don’t let your credit surprise you in the future. You should be consistently monitoring your credit report. This can also be useful in catching if debtors are still claiming you owe money after declaring bankruptcy. Be sure to alert your bankruptcy attorney if you find anything suspicious. Check for any inaccuracies and then monitor the report as you go so you can see how your actions are helping it improve. This can be a great motivation to make your payments on time and avoid overspending in the future.

4. Maintain Caution Going Forward

Create a detailed budget so you can track your spending and avoid the pitfalls of overspending in the future. It’s also helpful to think about why you needed to file for bankruptcy in the first place. If it was a one-time event that depleted your savings and caused you to go into debt, you might not need to worry as much. However, if it was due to a habit of poor money management, you’ll need to work against the impulse to overspend in the future.

 

If you need help regaining your financial freedom, turn to the skilled bankruptcy attorneys at John D. Wieser Esq., P.C. in Rochester, NY. This full-service law firm is staffed by a legal team that is well-versed in bankruptcy law, including the differences between Chapter 7 and Chapter 13 bankruptcy. Their in-depth knowledge will help inform them in handling your case in a skilled and individualized way. They will also take the time to explain each part of the process to you as your case proceeds. Schedule your consultation today by calling (585) 328-0660 or learn more about the practice online.

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