Helping With Your Financial Future

Tips for making life easier after bankruptcy

On Behalf of | Oct 28, 2022 | Life After Bankruptcy

Filing for bankruptcy is generally seen as a last resort for those who can’t stay current on their debt obligations. Although bankruptcy comes with a variety of negative consequences, you may be able to recover from them in a relatively short period of time. Let’s take a look at what you may be able to do to get back on track after declaring bankruptcy in California.

Learn from your mistakes

If you accumulated significant credit card debt, it may be best to avoid using credit cards if possible. Doing so may help you avoid living beyond your means, which can make life after bankruptcy more secure than life before you filed. It is a good idea to create a budget so that you can better track both your spending and income levels. In some cases, the easiest way to avoid getting back into debt is to get a second job or to find a career that pays more than what you’re currently making.

Lenders generally care about today

As a general rule, lenders only care about what you’ve done over the past year or two. Therefore, it should be easier to gain access to credit within 12-18 months of a bankruptcy discharge. If you file for Chapter 13 protection, it may be possible to get a car loan, credit card or personal loan while your case is still ongoing.

Filing for bankruptcy may reduce your credit score and make it harder to get credit for several years. However, it may also reduce or eliminate your debts, which may reduce your reliance on credit cards. Depending on the circumstances of your case, it may be possible to retain a car, home or other assets after seeking protection from creditors.