Here is a quick breakdown of what to do after bankruptcy is complete from David S. Clark, an Opelika-based personal bankruptcy attorney who offers help for those seeking Chapter 7 or Chapter 13 bankruptcy in Lee County, Alabama.
Unfortunately, there isn’t much information about what happens after bankruptcy, and many Auburn or Opelika residents are often faced with a scary question: “What do I do now?”. Ultimately, life after Chapter 7 or Chapter 13 bankruptcy holds a lot of uncertainty and, truthfully, will come with a few hardships (such as rebuilding your credit). However, life after bankruptcy is actually the key to your financial “reset” or “fresh start”. Here is a quick breakdown of what to do after bankruptcy is complete from David S. Clark, an Opelika-based personal bankruptcy attorney who offers help for those seeking Chapter 7 or Chapter 13 bankruptcy in Lee County, Alabama.
DISCLAIMER: The following blog post is just advice, and you will be better served to call David S. Clark with your bankruptcy questions. This blog contains helpful tips and advice, but is not professional legal advice, and shouldn’t treated as such.
Need Bankruptcy Help? Call David S. Clark
Adapt Good Saving Habits
If you’ve been in a history class, then you probably understand the phrase “history repeats itself”. In this situation, it’s important to avoid this in every way possible, especially after facing bankruptcy. So, the best way to avoid going bankrupt again is to establish good and superior financial habits. These are called habits for a reason, and it may take some growing pains, but these choices are crucial to rebuilding your finances!
Create a Budget & Stick To It
More than anything, life after bankruptcy can be stressful and confusing, so planning your finances around a simple budget can help relieve the pressure around you. So, take time to establish a budget that works for you and fits within your unique wants and needs.
Rebuild Your Credit, Rebuild Your Financial Freedom
To achieve a new financial life after Chapter 7 or Chapter 13 bankruptcy, it is very important to take the necessary steps to rebuild your credit. Rebuilding your credit can be accomplished by making your payments on time, opening a secure credit card and gaining a credit-builder loan.
Payment history accounts for 35 percent of your overall FICO credit score calculation. Therefore, it is highly imperative that you are consistent with paying your bills on time when rebuilding your credit. This goes to show that you are becoming financially responsible.
You should begin by reducing your dependence on credit cards in general, though the use of a secured credit card can help you gain a sense of trust through the eyes of your creditors. A secured credit card is usually backed by a savings account in your name, where the money serves as collateral and establishes a spending limit. Once again though, it is still just as important to make those on-time payments with your secured credit card.
Credit-builder loans are just another great way for you to continue rebuilding your credit. With this type of loan, you essentially make fixed payments to your lender and then get access to the loan amount at the end of the loan’s term. Credit-builder loans provide you with another opportunity to show that you are financially responsible enough to consistently make on-time payments.
Your Chapter 7 and Chapter 13 Bankruptcy Attorney – David S. Clark
If you are an Auburn or Opelika, Alabama resident searching for a new start with Chapter 7 or Chapter 13 personal bankruptcy, David S. Clark has years of experience serving this community. Contact David S. Clark today for more information!
DISCLAIMER: The above blog post is just advice, and you will be better served to call David S. Clark with your bankruptcy questions. This blog contains helpful tips and advice, but is not professional legal advice, and shouldn’t treated as such.
