Due to chapter 7 or chapter 13 bankruptcy, there is an option for you to get back on track after a devastating financial crisis. Your bankruptcy lawyer Long Island has done what they could, and now you need to deal with the consequences of your finances. The big question becomes how to bounce back from bankruptcy. What should you do and where should you begin?
Plan a Workable Budget
The first step to your fresh start is to begin from the basics. You have an income and the next step is to make a budget. Prioritize your needs and bills you have to pay for. If this means you will have to spend a few months without a budget for leisure, then so be it. You will be right back on track soon enough.
Always Pay Your Bills
Your credit is the first to go when you file for bankruptcy. Fortunately, you can rebuild this credit by being timely with your payments. It is not enough to pay utility bills like the electricity and your phone bills but pay them on time. This is also good practice to practice the habit of paying your dues.
Rebuild Your Credit
This may seem like a counter-productive move for someone who recently got out of debt but get a credit card. The only way to rebuild credit is to start somewhere. Avoid applying for multiple credit cards. Make sure to use your card for purchases you can pay for when you do apply for one.
Avoid Massive Purchases
Instead of rebuilding credit through big purchases, hold off on buying cars or applying for mortgages until you have built stable ground on your credit. You will not get good rates if you attempt to apply for loans with your very poor credit score. Keep your charges small and manageable.
Do Not Be Afraid to Appeal
Most people are afraid of securing loans because they are scared the lending firms will reject them. In truth, these firms are humane when it comes to circumstance surrounding bankruptcy. You can write to these firms explaining your situation and you will be surprised the result will go in your favor.
Be Vigilant Against Scams
It is tempting to find a quick and easy fix if you find yourself in a low financial situation. Many come up to you, promising to help you get on your feet overnight. Keep in mind getting back on track is a long road especially when it comes to bankruptcy. Do not believe people offering fast solutions.
Sometimes, a person's low point is the place where they can bounce back. Filing for bankruptcy is not the end of the world. It is not even the end of your financial stability. Bankruptcy is, in fact, a way to get a fresh start on life. Find a reputable bankruptcy lawyer to help you start anew if you find yourself in a financial mess and the only way out is filing for bankruptcy.