Begin Again: How You Can Declare Bankruptcy and Start Moving On After
Declare Bankruptcy
Declaring bankruptcy is a difficult and often frustrating process. While it can wipe the board on your financial problems, it isn’t something you should do without plenty of thought and planning.
Here are four steps that you should take to declare bankruptcy and begin repairing your finances afterward.
Figure Out What Problems Bankruptcy Will Solve
Before you decide to file bankruptcy, you’ll need to carefully analyze your financial situation to figure out what problems it will solve.
While most consumer debts are wiped away in bankruptcy proceedings, certain debts are excluded.
The most notable type of excluded debt is student loan debt, which will remain with you after you declare bankruptcy.
At this phase, it’s important to sit down with a good financial advisor who can help you decide if bankruptcy is really right for you.
Find a Good Bankruptcy Attorney and File
Once you have determined that filing for bankruptcy is the right choice, it’s time to begin the legal proceedings.
A bankruptcy attorney is invaluable for this stage. You will need their guidance and assistance in filing the necessary paperwork.
Bankruptcy is a difficult process, to say the least, but the right attorney can at least help you make it as smooth as possible.
Save as Much as Possible After Your Bankruptcy Is Finalized
Once the bankruptcy proceedings are over, it’s important to rebuild your emergency fund as quickly as possible.
Since you won’t be able to access credit for some time after your bankruptcy, you’ll need to have enough savings to get through unexpected expenses on your own.
Ideally, you should save about six months of your income up in case you lose your job or are forced to take time off of work due to medical or family issues.
Begin Repairing Your Credit Score
Rebuilding your credit after bankruptcy is difficult but not impossible.
To start, you’ll likely want to get a secured credit card that lets you draw a line of credit against a cash deposit.
Responsible use of this card will gradually begin to improve your credit score and allow you to qualify for more traditional credit lines.
Whatever you do, be very careful to manage your debts sensibly.
Although bankruptcy is difficult, it isn’t the end of the world.
With a good attorney to help you navigate the process and a cautious approach to fixing your finances afterward, you can navigate your way through bankruptcy and get on with your life.
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Category: Bankruptcy
