Bouncing Back from a Bankruptcy

Bouncing Back from a Bankruptcy

Bankruptcy is a personal financial decision. For some individuals, it is the most responsible action to take in light of their circumstances. It is also an opportunity for a new beginning, and many filers feel a sense of freedom and relief once the process is finished. With a fresh financial start in life and taking steps to improve your finances going forward, you can successfully bounce back from your bankruptcy. In fact, your North Carolina bankruptcy attorney can provide you with advice on what to do after your bankruptcy filing and after your discharge.

Strategize for Rebuilding Your Credit

Although you may qualify for the first loan you can find after your bankruptcy filing, it usually isn’t in your best interest to take out loans immediately after bankruptcy.   Unfortunately, for many people, it’s an easy way to get caught up in debt again. Strategizing how you will utilize credit and what forms you should apply for should be one of your first steps after filing for bankruptcy.

Some experts recommend avoiding credit cards and loans altogether if you can. With high-interest rates and annual fees, and some credit cards even requiring a security deposit, they often are not worth it. Consider other ways to manage your cash flow and take a break from all forms of credit for a few months at a minimum. When it is time to get a loan or apply for a credit card, make sure you shop around to get the best rates.

Review Your Credit Report

Now is the time to ensure that all of your discharged bankruptcy debts have been removed or marked as such from your credit report. You should also look for other inaccuracies on your report, such as accounts that are not yours or reported late payments that are not correct. When you do decide to apply for a line of credit, you can be assured that your credit report is an accurate representation of your credit health. Cleaning up any errors on your credit report can also help your credit score increase faster.

Have the Right Mindset

Just like anything else in life, you need to have the right mindset and attitude to bounce back from bankruptcy. When you hire a seasoned North Carolina bankruptcy lawyer, you will receive help with this. Think of your bankruptcy as a business decision. You can get the maximum benefit from your fresh start when you see it as a learning experience. Be mindful of restoring your credit and showing creditors that you are a good credit risk. Make your payments on time and keep your credit card balances low.

Get Your Fresh Start with a Knowledgeable North Carolina Bankruptcy Lawyer Today

If you are considering a bankruptcy filing, discuss all of your available options with a knowledgeable bankruptcy attorney at King Law Firm. We have many office locations in North Carolina to assist our clients. We can also meet with you at other convenient locations. Schedule your free consultation with King Law Firm by calling (800) 635-1683 or use our confidential online contact form. One of our experienced North Carolina bankruptcy lawyers is available 24/7.