The bankruptcy is over, the settlements are concluded and it’s safe to answer the phone. There are undoubtedly great feelings of relief, possibly mixed with shame and regret. What happens next?
A bankruptcy offers a fresh start and it’s important to take advantage of it. Whatever the cause, it’s time to identify as many past financial mistakes as possible so that they aren’t repeated in the future. Many people have successful financial lives after bankruptcy, but some slip back into old, bad habits. Don’t let that happen. For more information visit online.
There are some important steps to take.
* Don’t be dragged down by emotional feelings of failure and guilt. You belong to a very big club; 1 out of every 8 Americans has seriously considered filing for bankruptcy. Develop more positive thoughts and attitudes; resolve to be more disciplined.
* This is the time for serious soul searching. Examine the past objectively. What could have been done differently? Develop a positive support system of friends and family. Talk to those who have been successful financially; they’ve learned what works.
* Develop a realistic budget, including a fixed amount for an emergency fund. Pay all bills on time. Automatic payments can be very helpful. Don’t miss a mortgage or rent payment. If there was a repayment schedule set up as part of the bankruptcy, be scrupulous about timely payment.
* Get a secured credit card. A deposit is made onto the card ($500, for example) and that is the card’s limit. Making small purchases with the card and paying for them in full every month will help to rebuild credit.
* Learn the facts about credit and credit scores. While there are many myths about rebuilding a credit score, the most important thing to learn is that paying on time will ultimately result in a great credit score. While the bankruptcy will remain on your credit report for up to 10 years, establishing a very good credit score can be achieved in much less time.
The Law Offices of Steven K. Brown St. Louis have been guiding people successfully through Bankruptcy St. Louis for over 30 years. In addition to a wealth of experience with Chapters 7, 13 and 11 Bankruptcy St. Louis, the firm also handles Personal Injury, Civil Litigation and Workers’ Compensation cases. Anyone in the St. Louis area who has been considering bankruptcy should call to schedule a free initial consultation.
