6 Tips to Rebound from Bankruptcy

rebound from bankruptcy

rebound from bankruptcy

When you file for bankruptcy, you’re giving yourself a financial fresh start. Bankruptcy allows you to easily free yourself from debts you have no realistic ability to repay. Although there are many positive benefits from bankruptcy, your credit will still also take a hit. Before you even file, you should think about the proactive steps you can take to rebound from bankruptcy.

Bankruptcy will improve both your life and your credit, but nothing in life is free. Learn how to rebound from bankruptcy by following the tips below.

1. Reflect and Regroup

Bankruptcy is not an easy choice to make, but it will settle your finances down. Make sure to ask your attorney the hard questions before you file so you know what to expect. Surround yourself with people you trust. Take your time and reflect on the circumstances that made bankruptcy your best choice. Keep your analysis simple. That allows you focus on what you need to do to rebound from bankruptcy and move forward.

2. Slim Down Your Lifestyle

In most cases, it’s just plain common sense to examine your budget once you file for bankruptcy. Simplifying your lifestyle and lowering your expenses does not mean giving everything up. Frugal can be sexy, especially if it helps you to afford the things that are truly important to you. Set your budget and stick to it.

3. Rebuild Your Credit History

Rebuild your credit profile. Pay your bills in full and on time every single month, and particularly the first few months after your bankruptcy. Seek out and use credit wisely. Think about what would make you appear a better credit risk to lenders. Work towards moving up in your career. Invest and save, and think twice before every purchase. Protect your credit once you’ve built it up.

4. Get A Credit Card

You must get a credit card (or two, actually) if you want to quickly re-establish your credit score. Credit cards may have been the reason you filed for bankruptcy in the first place. But credit cards are also the very best way to rebuild your credit after a bankruptcy. If you do not qualify for an unsecured credit card, get a secured card. Make sure you regularly request a credit increase. Use the card and be sure to pay it off each month. Your credit will improve more quickly with this tip than by any other method.

5. Keep A Positive Attitude

Bankruptcy is all about your attitude and yes, persistence can makes all the difference. For most people, life is not easy street. Keep sane, pay your bills, and try to exhibit the type of character attributes that you admire in others. Be friendly when dealing with lenders, your boss or manager, and your friends and famiy. Don’t let how others see you change how you see yourself. Making informed decisions in your own best interest will help you maintain a positive attitude in all aspects of your life.

6. Keep It Realistic

Keep things realistic after bankruptcy. Once you have filed for it, keep your finances in check. Keep life in order. Work on building your own personal and financial future. Stay focused on what you want in life. Think about the things you want out of life, then figure out a way to get them.

Rebound from Bankruptcy on Your Terms

Bankruptcy is not fun, but Lee Legal attempts to make the process as pain-free as possible. You can manage the months and years following your bankruptcy by following the six tips above.

About Brian V. Lee 496 Articles
Brian V. Lee provides bankruptcy, foreclosure defense, business turnaround, and litigation services to clients in the District of Columbia, Virginia, and Maryland. Brian was the Washington, D.C. state chair of the National Association of Consumer Bankruptcy Attorneys from 2016 to 2018.

2 Comments on 6 Tips to Rebound from Bankruptcy

  1. I like what this article mentions about slimming down your lifestyle after bankruptcy. It makes sense that this could be beneficial as it would reduce the cost of living. it’s something to talk to the lawyer about to see if they’d have any tips or recommendations on good ways to save. Thanks for sharing!

    • It’s definitely a great idea to ask your bankruptcy lawyer what specifically you can do to reduce living costs post-discharge. Every budget is different, and your bankruptcy attorney is uniquely positioned to help you analyze your income and expenses.

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