Stockton Bankruptcy Attorney


Posted on November 1, 2018 · Posted in Bankruptcy

The Truth About Life After Bankruptcy

Well, the truth is that a whole lot probably didn’t change except for your eligible debts being gone following discharge, and a huge amount of stress being lifted off of your shoulders. Your credit will not be strong following your bankruptcy discharge, but it almost certainly wasn’t strong prior. Individuals who have completed a bankruptcy discharge will have record of that bankruptcy on their credit report for 10 years from the date of filing. For many individuals, the presence of the bankruptcy on their credit report will not greatly impact their access to credit, because their score was not good before the bankruptcy discharge. The important thing is that you have completed your bankruptcy and you will now be able to begin rebuilding your credit.

Budgeting, Saving Money and Staying on Track

It may sound obvious, but saving money and creating a budget are important tools you need to use to help stave off future debt troubles. Planning and executing on a budget is a great way to gain an understanding of your income and expenses, which is an important step on the path to staying out of financial trouble. Individuals generally find themselves in trouble when they don’t have money saved for a rainy day. Medical bills and job loss are leading causes of bankruptcy and having some extra money in the bank for such emergency situations can really help. Following a bankruptcy, it is especially important to begin saving money. Having money in a savings account will always be there to help you through difficult times, and it can also be used to help you secure and rebuild your credit!

Rebuilding Your Credit

Rebuilding your credit is the most important action you can take following a bankruptcy and although it may be difficult, it is far from impossible. Individuals have been known to qualify for FHA home loans only 2-3 years after filing for bankruptcy! Beginning the process of rebuilding your credit is the most difficult part because getting that first lender to approve you will be your most difficult hurdle. You will also have to watch out for predatory creditors who will attempt to take advantage of you during your time of need, and who could land you write back where you started prior to filing – In debt and behind on payments. The most important thing to remember is that If it sounds too could to be true, it probably is. There are reputable lenders who will provide you with the opportunity to re-establish your credit and it is vitally important that you do so responsibly. Individuals with a bankruptcy discharge can expect higher interest rates and lower limits, but be patient. If you utilize your available credit and make your payments on time, your score will increase, and with it, your access to credit.

If have not filed bankruptcy and you are getting harassed by creditors, call (209) 475-0499 to speak with a Stockton bankruptcy attorney at our firm today.

1151 W Robinhood Dr C8
Stockton, CA 95207 US
(209) 475-0499

Our attorneys help with Chapter 7 & Chapter 13 Bankruptcy.