Life After Bankruptcy

Although facing bankruptcy may seem like the end of the world so some people, be assured that life is not over after bankruptcy. With the right knowledge and plan, life could be even better. Bankruptcy gives a person a second chance in life. If you are currently struggling paying your bills, you could be a good candidate for bankruptcy. However, how can you tell whether you are a good candidate or not? If you can answer yes to some of the following questions, chances are bankruptcy could be a good alternative for you.

  1. Did some of your credit cards reach their maximum limit? Are you paying the minimum due just to get by?
  2. After paying all your monthly bills, do you find you have no money left?
  3. Do you have a large amount of unsecured debts like credit cards, medical bills, personal loans, IRS, etc.?

If you pay only the minimum every month, it could take decades before paying off that debt. You could improve your quality of life faster if you get rid of your debts by contacting a qualified bankruptcy attorney to help you through this process.

What to do after Bankruptcy?

After bankruptcy a person’s credit score does decline. However, with some good strategies and careful budgeting your credit score can get even better than before. After getting the discharge, you should do the following things:

  • Review your credit report: Make sure everything is correct. If something is wrong, take the necessaries steps to fix it.
  • Apply for a secured credit card: After bankruptcy, it will be hard to be approved for an unsecure one. The secured credit card will help you start improving your credit score. Be sure to make the payments on-time (paying the balance in full every month is recommended). Furthermore, never go over your credit card limit.
  • Make sure to pay your bills on-time: Keep in mind that paying your bills on-time makes 35% of your credit score.
  • Apply for a loan after a year of the discharge: It could be a car loan, personal loan, etc.
  • Save money. Start saving the money that you are no longer using to pay your debts. It can be used for an emergency or something else you want to buy.

What not to do after Bankruptcy?

You must be very careful about what you do and don’t do after bankruptcy. Avoiding the following mistakes will help you increase your credit score faster.

  • Opening many credit cards: Getting over your head by using credit again will just help you to get on the same road of debts. Make sure to be very aware of your limitations and do not spend more than you cannot afford.
  • Avoid credit completely: This is a mistake to avoid. The only way to improve you credit score after the discharge is to apply for credit again and keep a good payment history. If you do not apply for credit, you credit score will not change much.
  • Make late payments: This will impede your efforts to improve your credit score.

What to Expect after a Few Years?

The professionals at Adams & Associates want you to have a normal life after your discharge. If you followed the above practices:

  • After two to three years you could be approved for a mortgage.
  • A car loan is possible after one year of the discharge.
  • It is possible to obtain an unsecured credit card.
  • You can expect your bankruptcy to disappear from your credit report in around 10 years.

Hiring a qualified bankruptcy attorney to discuss your options should be the first step. If you feel you are in over your head and your financial situation is more than you can handle, call Adams & Associates for a free consultation at 888-724-9860.


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