Filing for bankruptcy can be devastating. It usually feels hopeless and that your dreams and plans for the future are now in jeopardy. Depression is very common when people deal with bankruptcy.
The reality is that bankruptcy is not the end of the world. And your dreams don’t have to be abandoned. There certainly is life after bankruptcy. You can actually bounce back and leave it in the past. It just takes a few steps and a plan to be able to successfully make a comeback.
In this article, we’ll go over several of the things that you can do to make your recovery after bankruptcy much faster and smoother.
While you can declare bankruptcy without using a lawyer and go on without ever using one, a bankruptcy lawyer can be instrumental in helping you bounce back faster. Having somebody on your side during the hearings can make a dramatic difference in what your post-bankruptcy life is going to be like.
For starters, they can help reduce or even eliminate much of the debt that you need to pay back. This can help you protect what you have much better.
They can also advise you on the type of bankruptcy that you should file for and what the risks are for your particular case. You could do something on your own that may put your future in jeopardy so a lawyer can help you avoid that.
Another benefit to having a lawyer instead of going through the process yourself is that they have a lot of connections. They know many of the judges and could even know the defense attorney working on the other side. This can give them an insight into how to proceed with the case that you would never be able to know.
They also understand the procedure better, so when something comes up, they know exactly how to handle it. Chances are that whatever you spend on the lawyer will be saved in the long run when it comes to how much you will pay back to your debt collectors.
To make sure that you are able to survive financially, you need to have a money management plan. Start out by seeing exactly how much money you spend in a month and where it goes.
Use a spreadsheet or an expense tracker app to get an accurate idea of where your money goes every month. List all of your monthly expenses and then track individual ones that happen regularly. Everything that you spend money on should be on this list and accounted for.
Then, try to weed out all of the wasteful spendings and eliminate them from your life. Anything like a cable TV payment, eating out, and maybe even a gym membership. The less you spend on extras and concentrate on your necessities, like mortgage or rent, the better.
You may have to cut some things that can feel a bit painful but a change in lifestyle is probably going to do a world of good anyway to avoid doing the things that may have contributed to your bankruptcy before.
When you pay on time, this will not only help you avoid late payments but will also allow you to get out from under the shadow of your bankruptcy a lot sooner.
Even with a bankruptcy on your credit report, a lender may give you a line of credit if you show a recent history of making early, on time, or even extra payments towards your debts.
If you have trouble staying organized, then setting up automatic withdrawals for payments will go a long way toward being able to make the payments on time. And with a good budget, you won’t find yourself running out of money before your payday.
Unfortunately, your bankruptcy will stay on your credit report for at least 7 years. This will impact your ability to get a car loan or mortgage to move on with your life. There is a way to have it removed from your credit report, however.
Send a letter to the credit bureaus and ask them who they verified the bankruptcy with. This is the same procedure that you would use if there was an inaccuracy in your report. So essentially what you are doing is correcting an inaccuracy in their reporting.
Send a letter to the courts asking if they verified the bankruptcy as they usually don’t. This is something that the credit bureaus find out for themselves. If they respond that they didn’t verify the bankruptcy with the bureaus then it can be removed after you’ve sent a copy of the letter to them.