Helping With Your Financial Future

Life after bankruptcy: You may face an onslaught of temptation

On Behalf of | Dec 6, 2023 | Chapter 7 Bankruptcy

Filing for a Chapter 7 bankruptcy can be a daunting yet liberating experience. It offers the promise of a fresh start, a chance to shed the burden of overwhelming debt and rebuild your financial life.

However, the journey to financial recovery is not always smooth. Along the way, you may encounter temptations that could jeopardize your newfound stability.

Unnecessary spending

After years of financial hardship, sudden freedom from debt can trigger a desire to indulge in long-awaited purchases. Wanting to treat yourself is understandable, but exercise caution and avoid overspending. Remember, bankruptcy is your chance to start over and improve your decisions.

Easy credit

As your credit score improves, you will likely begin to receive credit card or pre-approved loan offers. Many filers have fallen prey to the allure of new credit. Resist the urge to take advantage of these offers, as doing so could quickly lead you back into debt.

Lifestyle inflation

As your financial situation continues improving, it is natural to want to upgrade your lifestyle. Unfortunately, giving in to the allure of lifestyle inflation can derail your progress faster than you might imagine. Stick to your spending plan and focus on long-term financial stability.

Credit repair scams

Scammers know bankruptcy filers are interested in improving their credit scores. They may promise to erase unfavorable data for a fee, a task they cannot accomplish. If they try to manipulate your score, it could worsen your situation. At the very least, you could lose money you desperately need.

When you file for bankruptcy with legal guidance, you get more than mere representation. You gain access to a wealth of counsel that improves your economic decision-making during and after your bankruptcy journey.