How to Recover From Bankruptcy
If you’ve considered filing for bankruptcy it’s likely that you are feeling like your debt is insurmountable. If you’ve ever felt completely paralyzed by your current financial situation, keep in mind that there is a hopeful light at the end of your bankruptcy experience. Chapter 13 and Chapter 7 bankruptcy are tools that you can use to fix your financial situation. Even though you may feel at your worst when you are filing for Chapter 7 or Chapter 13 bankruptcy it’s important to consider that you will get back on your feet. Here are some top tips on how you can recover from bankruptcy!
How Did You Get Into This Position?
During a bankruptcy we look back at the way we manage our finances and what led us to the point of filing for bankruptcy. It’s important not to consider what happened but what you would like to learn for the future. Getting held up on some luxury purchases or some poor financial decisions that you made in the past will not be a constructive way of thinking as you are moving forward. Learning from these experiences is what’s important. Understanding how you can do better with your financial situation than you did before is the only way that you’re going to bounce back.
Set Some Financial Goals
Experiencing ongoing difficulty with your finances can be an important springboard for setting some financial goals in the future. When you have a vision for your future finances and some of the financial products that you would like to qualify for the future, you can start to establish some goals. Financial goals might be to qualify for a home loan or to qualify for an auto loan in the future. There’s not necessarily a roadmap for qualifying for some of these financial products but you can put yourself on the right path by re-establishing your credit and working on your credit score for the future!
Try Not to Take on Any Serious Debts
Carefully weigh any of the debt that you’re going to take on in the future. Part of the reason that you may have had to submit a claim for bankruptcy is because you amassed too much debt in the first place. Piling on more debt is never a solution that you should take on after filing for bankruptcy. Consider staying away from credit cards and focusing on making purchases that you can pay off quickly. Unless you can afford to pay it off before interest is applied to the debt, it is best to avoid making the purchase after you file for bankruptcy. This may require you making some sacrifices like driving an older car, finding other ways to work or only affording what you can buy in cash, but this is a great way to prevent some of the mistakes with debt that you had in the past.
Stay Away From High Interest Financial Predators
When you file for bankruptcy it’s likely that a series of lenders will also get the word out. Depending on the financial institutions that you are dealing with it’s likely that there are a series of ways that predatory and high interest financial products providers can find it that you filed for bankruptcy. If somebody happens to find out that you filed for bankruptcy recently, it’s likely that you could be offered a high interest financial product that may quickly get you on the hook for more debt and make sure that your debts can become unmanageable quite quickly.
Consider Financial Counselling
Working with a financial counsellor can be an excellent way to move forward. A financial consultant can show you ways that you can prevent mistakes in the future and help you to get your finances back to a more stable level so that you can stay afloat. Finding a reputable financial advisor will help you budget much more effectively and is a great way to recover from bankruptcy.
Looking for help with a potential bankruptcy? Look no further than Bruner Wright P.A., the best set of bankruptcy lawyers in the state of Florida! Contact us today to learn more about how we can guide you through bankruptcy!