There’s Life After Debts

There’s Life after debts

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Mismanaging credit may have gotten you into trouble, but you have to rebuild your financial status. After your bankruptcy has been discharged, you need to re-establish good credit immediately for a Chapter 7 or after reorganization for a Chapter 13.  How soon you restore back your credit will depend on a wide selection of factors. You have a fresh start; however, there are some new challenges ahead. The bankruptcy will stay on your credit report for 10 years. For some time, you may not be able to get a loan or credit card. If it happens, interest rates and fees attached will be punishing.

No-frills lifestyle

This means changing the basics in your life. If you’ve filed a Chapter 13 thru riverside bankruptcy lawyer, it means you’re paying some of your debts in what is known as reorganization.  For a period of 3-5 years, the court allows you to set an amount in paying your apartment and groceries, while the court appointed trustee divides the rest among your creditors each month.

If you filed a Chapter 7 thru bankruptcy attorney riverside, you walked away from most of the debt. Your salary is yours, if you have one, but the bankruptcy stays on your credit reports for 10 years. You have to start living on cash, rather than counting on any form of credit, and building an emergency fund is key.

Show what you know

Demonstrate you’ve learned from your financial mistakes. Make all your payments on time and build up a savings account for rainy days. Establish good financial habits and apply for a secured card.

Be Positive

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Learn to bounce back and learn from past financial mistakes.  Build savings account, carry no debts, and have an emergency fund. You can control your behavior.  Attitude and persistence can make a difference.

Should you have further questions and want to learn more about Chapter 7 and Chapter 13, consider the services of bankruptcy attorney riverside county ca.