You may see bankruptcy as a final defeat, but if you are able to quickly rebuild yourself after a bankruptcy, it can be one of the best financial decisions you make. Here are some tips on how to complete a bankruptcy with success.
Choose the Right Type of Bankruptcy
If you're not sure whether to choose between chapter 13 and chapter 7 bankruptcy, then a bankruptcy attorney, like those at FactorLaw, is your best resource. Each type of bankruptcy will affect your options going forward, since they affect how much property and assets you can keep during the bankruptcy process. Use a consultant to look at your assets, and determine how you can lose as little as possible from your bankruptcy process.
Create a Financial Plan
If your bankruptcy was due to mismanagement of your finances, there are many resources to help you get back on track. The first step will be to work with a financial counselor to create a financial plan and budget. The adviser will help you to see where your money's going each month and cut back expenses when necessary.
Financial management courses are offered at many financial institutions and local community colleges. These can help you find tools for tracking your spending and sticking to a budget.
Protect Yourself
If your bankruptcy was due to unforeseen circumstances, such as a large medical bill that you couldn't pay off, then now is the time to take some steps to prevent it from happening again. For instance, you may need to take out a larger medical insurance policy.
Choose Credit Cards Carefully
After you have declared bankruptcy, it can be difficult to start building up your credit. You will likely need to open a new line of credit in order to start restoring your credit score. However, you can resist the temptation to spend too much by choosing a department store credit card. Instead of opening up your spending completely, you will only be able to buy what's on offer at that particular store.
Consider a Used Car
A used car loan is another good way to rebuild your credit quickly. Some car dealerships will cap the monthly payments at a certain level so that you can manage how much you're spending each month. Even with poor credit, many lenders will give you the loan for a used car.
The road to repairing your credit after a bankruptcy can be long, but the steps are straight forward. By starting with a great bankruptcy attorney and taking continual steps to restore your credit, you can come out of a bankruptcy gracefully.
Share14 July 2015
When I started my first small business, I had no idea how much I really didn’t know. I was fully prepared to deal with customers, sell product and even handle complaints and returns. What I wasn’t aware of was that there is so much more to it. I was lacking the legal expertise to protect the company and myself. I wanted others to benefit from my experience, mistakes and lessons learned, so I started this blog. From employment law to the legal business contracts you’ll have to sign when you form partnerships, business law is complex. I hope that the information here will help you to be better prepared when you start your business so that you’ll know when you need to call an attorney and when you can handle things yourself.
