If you are in debt, you may be thinking about filing for bankruptcy. Making a decisions about bankruptcy can be difficult, that’s why we recommend our clients understand what life will be like after they file.
It is essential that you take steps to bolster your finances during bankruptcy. It is also imperative that you are disciplined in following some steps once you’ve filed. Doing these two things together can help ensure you have the best financial life after bankruptcy.
1. Checking Credit Reports
Your credit report will take a hit due to the bankruptcy. Since most of your debts will be relieved in the bankruptcy, you need to make sure that those accounts are accurately reported. Once your bankruptcy is discharged, the accounts should reflect that. Make sure you continue to check your credit report yearly, for the rest of your life. By doing this you can see how debts are impacting you, while making sure you are not the victim of identity theft. If you see accounts on your credit report that are not yours, you should report them and investigate what is happening.
2. Setting a Budget
A budget can be your financial lifeline. You should set up your budget based on your income. Throughout your bankruptcy case, you have to be able to pay your normal bills along with the bills related to your case based on your income. When you set a budget and learn to live within the budget, you learn how to achieve financial freedom – during and after the bankruptcy.
3. Rebuilding Credit
Once your bankruptcy is discharged you can begin rebuilding your credit. You can start with a secured credit card and then slowly and responsibly add other forms of credit. Note that these credit opportunities could come with higher interest rates due to your current credit status. You should only charge what you can pay off and you should strive to not carry balances since doing so could lead to another financial crisis.
4. Having an Emergency Fund
Having an emergency fund could be key to your future success. Start saving now. No matter how little, you should make deposits into your savings. Your emergency fund should be able to cover your expenses for three to six months. This will keep you out of another financial crisis if an emergency popped up.
If you are feeling overwhelmed by your debts, take a hard look at your financial affairs. If you can’t find a way to get past your debts, bankruptcy may be an option for you. Call Craft Law Offices and let bankruptcy attorney Leslie Craft explain the two types of bankruptcy to you. She can help you make a decision about bankruptcy that is best for your situation and needs.
Call 252-752-0297 and let us help you get your peace of mind back today.