Life After Bankruptcy
Once you have finalized your bankruptcy, you can expect to feel a weight lifted off your shoulder. Not only will you not have to worry about accumulating and overwhelming debt, but you will also not have to deal with the harassing phone calls from creditors and the wage garnishments every month. You can concentrate on moving forward financially and emotionally and will be able to put this whole mess behind you.
Chapter 7 and Chapter 13 Bankruptcy
If you have filed for Chapter 7 bankruptcy, once the bankruptcy has been finalized, you will be free to start again. You will still need to make payments on any assets and secured debts you have kept such as your car and house, as well as any unsecured debts that have not been discharged, such as alimony. However, you will not have to worry about unpaid credit card bills and looming interest rates and late fees soaring every month.
If you have filed for Chapter 13 bankruptcy you will be put on a payment plan. It is up to you to ensure that you stick to this payment plan. If you are having trouble keeping up, ask for help now, rather than later.
Starting Fresh
The first thing to remember the second time around is to budget accordingly. Do not go out and apply for a mountain of credit cards or purchase items you do not need. Keep it simple – necessities only, until you have a steady schedule and budget. If your job is not too steady, do not rely heavily on your income. Maintain your budget around secure money only.
You may need to keep a spreadsheet of income and expenses which will help you see where the money is going and where you can cut back. It is a good idea to earn the money before you purchase anything. This may mean biting the bullet and living without luxury for a little while; however, once you have saved the money for a larger purchase, you will be able to enjoy it without the fear of rising debt. Try to establish a savings account with any leftover money each month – use this money for emergencies only.
It is also a good idea to speak to a financial advisor about managing your money and ensuring that you do not go overboard again. Our lawyers can help you work out a financial schedule and stick to it after you have filed for bankruptcy.
Bankruptcy and your Credit Rating
Bankruptcy will affect your credit report – you may have limited access to credit initially but, if you work hard you will be able to lift this limit with time. You can also expect higher interest rates than before which are all the more reason to work out a budget to ensure you are making the payments every month. If you stick to a schedule and remain one step ahead of your daily debt, then your interest rates will drop and your credit report will continue to rise.
Minneapolis Bankruptcy Lawyer & Attorney
Myles A. Schneider & Associates, Ltd. can help you gain control of your life after bankruptcy. With over 60 years experience between them, the team at Myles A. Schneider & Associates, Ltd. offers affordable rates, compassionate and confidential service and qualified legal support when you need it most.
We represent bankruptcy clients in matters involving Chapter 7 bankruptcy, Chapter 13 bankruptcy, wage garnishment, creditor harassment, foreclosures and debt consolidation. Contact Myles A. Schneider & Associates, Ltd. 24 hours a day, seven days to week at 763-315-1100 to see how we can help you.
