Starting Over After Bankruptcy – Rebuilding Your Financial Life

Southern Indian Bankruptcy Attorney Helps Debtors Rebuild Their Financial Lives

Options After Bankruptcy

Although declaring bankruptcy gives you a fresh start, your credit rating has likely taken a hit. Those filing bankruptcy may not be able to get a loan or credit card for a certain period of time because lenders might see them as a bad risk, although this is not always the case. According to a recent study, 96 percent of consumers were offered new credit within a year of declaring bankruptcy, and many auto companies and lenders are willing to finance a vehicle or approve loans at reasonable rates after a bankruptcy.

720 Credit Score After Bankruptcy

Bankruptcy is not the end of the world. Although rebuilding your financial life will not be easy, it is possible to get that fresh start you’ve been hoping for, depending on the type of bankruptcy you filed.

Chapter 13

In a chapter 13 bankruptcy, your debt will be reorganized and you’ll pay off some of it through a payment plan that will stretch over three to five years. During the bankruptcy, the court will allow you a set amount to live on each month, the trustee will divide the rest among your creditors, and you will be prevented from taking on new debt without the court’s permission. At the end of the reorganization, your debts will be paid, although the bankruptcy will stay on your credit report for 10 years.

Chapter 7

If you filed for chapter 7 bankruptcy, most of your debt was probably discharged. Although your salary will be yours to manage again, the bankruptcy will stay on your credit report for 10 years, likely requiring you to live on cash rather than relying on credit. For this reason, building an emergency fund will be vital to deal with future emergencies or unexpected events.

h2 Re-establishing Credit

After your bankruptcy has been discharged, it will be necessary for you to re-establish credit to rebuild your financial life. If you were able to keep your house through the bankruptcy, making your mortgage payments on time will improve your credit report. After a bankruptcy, you should become extra vigilant about your finances, and now is the time to get serious about creating and sticking to a budget.

The team at The Koehler Law Office will help you move forward and get your life back after a bankruptcy. Contact our firm online, via e-mail, or call (812) 785-8191 and set up your free initial consultation with one of our experienced attorneys today.