Bankruptcy – Life After Bankruptcy

There are many reasons why people file for bankruptcy. Most people live paycheck to paycheck and are dumped into financial ruin because of a job loss. Other people experience unforeseen medical troubles and get buried underneath a mountain of doctor bills. And yes, there are those people who try to live a champagne life on a beer budget with nothing but supersized credit card debt to show for their efforts. Regardless of the reason for filing, after the process has completed and you receive your discharge papers in the mail, it is time to start rebuilding your life after bankruptcy.

The first step is to evaluate what led to the bankruptcy in the first place. This will give you clues as to how to prevent a repeat of the situation. If the problem stemmed from living paycheck to paycheck, then your goal should be to have an emergency savings fund for unexpected expenses. If poor money management skills were at the heart of your trip to the courts, then investing in a book or course that will teach you how to handle your money would be well worth the expense. Sit down with your significant other and have an honest discussion about what happened and what you each can do to ensure a more stable financial future.

Having good credit is a necessity in this day and age, so your next goal is to work on rebuilding your credit profile. In the past, starting over after bankruptcy was very difficult as no one wanted to take a chance on someone with that kind of mark on their credit report. However, today you’ll find any number of programs that will help you get back on your feet. Understand, though, that you will be paying premium interest rates on any credit that is extended to you until your credit score improves.

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Rick D. Banks, Attorney at Law
776 E. Shaw Ave., Suite 206
Fresno, CA 93710
(559) 222-4831