Get Your Life Back After Bankruptcy!


Photo courtesy of Magnus D

After filing for bankruptcy, many people are afraid that they will never be able to get their lives back in order. The truth is, bankruptcy was actually created to help troubled consumers rather than hinder them, and it is definitely possible to reinvent yourself after a bankruptcy as long as you are actively working to make improvements in several areas of your life.

Employment
If you are unemployed at the time of your bankruptcy discharge, the first thing you need to change is your employment status. Getting a job post bankruptcy is not the unattainable impossibility that many have been led to believe. “You’ll never get hired anywhere after a bankruptcy!” is simply a myth perpetuated by lenders to keep their debtors from having their debts discharged instead of repaying them. In general, bankruptcy is rarely a cause for an applicant not being hired for a job, even in positions that require security clearance.  Your credit score and report really have no significance when it comes to getting a job. Additionally, if you are already employed at the time of your bankruptcy, it may be necessary for you to look for a better paying job or a second job temporarily while you work on building your credit back up. Your bills definitely need to be paid on time, now more than ever.

Budgeting
Once you have secured adequate employment, make a realistic budget and stick to it.  Live below your means and start changing all of your bad financial habits. All of your debts have now been erased, so view this as a “do-over” – and do it right this time! Don’t let history repeat itself, or you’ll really have a problem, because you can’t declare another bankruptcy for 8 years.

Building Credit
Attorneys recommend that you get 1-3 bank credit cards and use each card a tiny amount each month, well within your means to be able to make your credit card payment in full and on time EVERY month. This helps gradually boost your credit score by showing that you can be responsible with money that is loaned to you.

Speaking of loaning – it is indeed possible to secure a personal loan after a bankruptcy. In order to expedite the process, look for lenders who lend to people with bad credit instead of seeking a loan from a traditional lender. Also, although your rates will likely be higher than average, do your best to get the lowest interest rate possible. You may be able to offer one of your assets to get a discount. Consider refinancing your loan at a later date to get an even better deal once your credit rating has gotten a little boost.

Finally, ensure that all credit bureaus have accurate information about your debts, and the fact that they have been discharged. You do not want your credit report declaring any old debts that have now been wiped clean. Only when credit bureaus have the correct information will your post bankruptcy credit score begin to improve.

Be Willing to Ask for Help
Contacting an attorney is always advisable even after a bankruptcy, especially if you are overwhelmed or unsure how to proceed in order to avoid making the same mistakes twice. Veitengruber Law would be happy to guide you after your bankruptcy discharge. We want our clients to reclaim their lives as quickly as possible, and we will work with you to help you reach your goals.

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2 Responses to Get Your Life Back After Bankruptcy!

  1. Pingback: Friday Five: We Can Do That! | Veitengruber Law

  2. Pingback: Bankruptcy Attorney Fees: Why They’re Worth Paying | Veitengruber Law

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