The harassing phone calls and collection letters are long gone. It’s now the first day of a new life after the bankruptcy. Most or all of the debt that was sucking the life out of everyone concerned has been discharged. So what happens next?
There are three areas that need rebuilding after the bankruptcy: your emotions, your credit and your finances.
It’s Time to Give Yourself a Break!
Filing for bankruptcy is not a badge of shame. The majority of bankruptcies were precipitated by circumstances beyond someone’s control, such as a lost job or serious illness. No one asks for their employer to go out of business or move jobs overseas, just as no one plans on having a stroke. Beating yourself over the head will only make it harder to be successful with this second chance.
It’s far better to just accept what happened in the past, learn from it and then let it go. Undoubtedly some mistakes were made, but there is no reason to make the same mistakes again. “Become more disciplined and move on,” states a Bankruptcy Lawyer in Lawrence KS.
Rebuild Your Credit
Before you know it, you will start receiving “pre-qualified” credit card offers in the mail. DO NOT accept these offers. The interest rates will be astronomically high and the terms prohibitive. These are cards designed to be misused and to tempt the user into greater and greater debt.
Instead, rebuild credit with a secured credit card. This means that if you deposit $300 into a bank account linked to the card, that becomes the credit line. When you use the card, you are using your own money, not going into debt. Charging small amounts onto the card each month and then paying off the card in full and on time, will gradually rebuild your credit.
Rebuild Your Finances
You will never have a better time to do this than now. The “how-to” is simple: create a realistic budget, stick to it, pay all bills on time and set aside some money each month for an emergency fund. This is easier to say than to do, but is absolutely necessary.
Joseph I. Wittman is a Bankruptcy Lawyer in Lawrence KS who has represented many people throughout their bankruptcies. He hopes that each one will go on to lead happy, successful and financially secure lives. If you are buried under debt and considering bankruptcy, visit his website at Joewlaw.com.
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