How to Start Over After Bankruptcy
Bankruptcy: The beginning of the End
Bankruptcy can be a very devastating experience. It can affect you both psychologically and emotionally. But, it can also be an excellent respite for those who have struggled in paying their bills. This is also beneficial for those who have been continuously fielding phone calls from collectors.
As an individual with debt, it is vital to note that bankruptcy isn’t the end of your financial life, even if it will have a remarkable effect. Bankruptcy will stay on your credit history for seven to ten years. A lot of experts recommend that in 2 to 3 years, you can start to acquire loans with rates almost as good as you can before you start getting into financial. This is possible if you take steps in rebuilding your financial reputation. For this to happen, you need to ensure that you figure out the leading cause of your financial problems. Take inventory of your income and outgoing payments, make a budget, consider going to a cash-based system, pay your bills on time, and track your expenditures.
Where to Start
You need to know why you got into a financial issue. Did you lose your job or got sick? Is there an issue with impulse control? Once you discovered the factor, you can start in making efforts and changes so that you don’t get into chaos again. This might include getting financial or psychological counseling. It might also need somebody in the family searching for a new or part-time job. Safeguards and accountability measures will also have to be established.
You also need to know how much money is coming into your pocket and how much your daily expense. This will give you the information you need to make a budget.
Some financial specialist recommends that you undergo a cash-based system. If you have a credit card or debit card, you are likely to overspend even if you do not have the cash. This is simply because a lot of banks provide overdraft security, and while you are assessed a fine for the overdrawing your account, the procurement is still covered. Thus, you tend to spend a lot you usually would. On the contrary, if you make use of cash, you can spend what you have in your pocket. So, this is a good way of handling extra money set aside for gas, groceries, etc.
Stay On Top of Your Finances!
Tracking your expenditure is also a good way to bounce back from bankruptcy. Many times people get in trouble as they are not aware of what they have spent. With regards to paying the bills, there is no cash available.
Bay Your Bills Early and Often
Paying your bill ahead or on time will be vital in bouncing back from bankruptcy. After a bankruptcy, your previous debt is wiped clean, and you have the chance to rebuild your credit. So, you have to ensure you pay your bills on time. Work with businesses which report your payments to the credit firms. This will make sure that the credit firms will list on-time payments. This will benefit you in the present and future.
Trying to decide if bankruptcy is right for you?
The Adler Law Firm PLLC in Detroit, Michigan offers FREE consultations to help people in need decide if bankruptcy is right for them. If you’re even considering bankruptcy in or near Detroit, MI, The Adler Law Firm can help show you the various options, such as Chapter 7 bankruptcy and Chapter 13 bankruptcy, and help you navigate the complexities and ramifications of each. We also offer some of the most affordable prices in the Detroit Metro area without compromising on quality. Contact Us today!