5 Step Checklist on Building Your Life back Post Bankruptcy

| August 12, 2014 | 0 Comments

Bankruptcy is fraught with speculation and is almost considered a financial taboo in the society. However, it is not the end of the world and it is entirely possible to build your life back even in such a situation. The following checklist will take you through the 5-step process for life after bankruptcy.

Bankruptcy

The Emotional Re-grouping

The very first thing you need to do is regroup your thought processes regarding the bankruptcy situation. Do not start equating bankruptcy with feelings of failure or inadequacies. These kind of negative emotions only pull you back further. Often bankruptcy might be a result of cumulative situations in your life. Take stock of such situations and a few instances might be:

  • Divorces
  • Recently growing medical bills for a family member
  • Loss incurred in a business which lacked a proper plan
  • Loss incurred while trying to pursue a particular dream or opportunity

You could simply associate your bankruptcy to its root cause and then customize your solution to manage the situation better.

Do Your Homework – Understand the Realities of Bankruptcy

Remember, not everyone who would be quoting bankruptcy myths have a clear idea of the situation. Do not fall for generic conceptions of the situation.

  • If you think you cannot qualify for a loan for 10-15 years after bankruptcy, you would be surprised to know you can get an FHA home loan even during your chapter 13 proceedings.
  • If you have been told that you would not be able to qualify for a credit card for at least 7-10 years post bankruptcy, you should then know that credit card companies would start sending in offers almost immediately after the discharge of your bankruptcy.
  • You can also qualify for car loans and mortgage loans without breaking the bank due to enormous interest rates. It is entirely possible to opt for reasonable rate loans even after bankruptcy.

Strategy for Future Bill Payments

Your bill and rent payments will be tracked by the credit bureau post bankruptcy. This is the first step to building your credit score from scratch. You can simply set up automatic bill payment options. This is the best way to stay completely on time with your bill and rent payments. You should also re-evaluate your finances and strategize a better budget.

Rebuilding Your Credit from the Ground up

Talk to professionals who can help you reassess all your vital steps to building up your credit score from scratch. The good news is if you play your strategies right, you can actually build a better credit score for yourself than even your pre-bankruptcy phase. Make sure to consult with local attorneys for customized solutions for your particular area and state. For instance talking to a bankruptcy attorney San Diego should be paramount if you are from the San Diego area.

The Final Step – Realistic Budget Parameters

Compartmentalize your entire income into your immediate expenses, bills, rent, and emergency funds. You can also visit your nearest BLC law center to get the help from a professional bankruptcy attorney on how to manage your finances for optimum scores post bankruptcy. Having a professional by your side will help you deal with the situation without making any further mistakes.

Author Box:

Peter Dean understands how bankruptcy can be alarming at times. To tackle it effectively, he recommends availing professional service from BLC law center and speaking about your standpoint to a bankruptcy attorney San Diego.

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Category: Bankruptcy

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