I filed a bankruptcy case. How do I go about improving my financial condition afterward?

My bankruptcy law office in Asheville, North Carolina stays busy.  Almost every day I meet with clients or potential clients scared of filing a bankruptcy case because the process for filing Chapter 7 or Chapter 13 feels daunting to them.  Usually, I respond by saying, “Your bankruptcy case will be relatively simple.  The key to a successful filing will be what goes on after you have received your discharge, and my work is done.”  The vast majority of bankruptcy clients receive a discharge just as we plan.  Rebuilding your credit afterward, while debt-free, offers a chance to put past bad luck or poor choices behind you.  Here are some tips for regaining sound financial footing after filing a bankruptcy case:

Beware of Dishonest Lenders.  Creditors target people who file bankruptcy cases, and offer deals which may seem too good to be true.  Although it seems weird, credit card offers can increase after a bankruptcy filing.  Do your research, examine interest rates, and only agree to borrow money if it works in your budget.

Examine Your Past Behaviors.  Maybe job loss or a medical issue forced you to file a bankruptcy case.  For many others, the recession wiped out home equity which was intended to act as a safety net.  However, it pays to spend time examining spending habits and cutting out the fat in your budget.

Get Professional Help.  We are truly blessed to have OnTrack Financial serving Western North Carolina.  I recommend seeing what services they offer, and what services they might offer you for free.

Build Credit.  Many credit counseling professionals recommend taking out one or two credit cards and paying the balance off each month after a bankruptcy case.  Credit card companies are surprisingly eager to sign you up for one of their cards after a bankruptcy case because they know they will be first in line for your money, and also know you will generally not be able to file additionally bankruptcy cases in the immediate future.

*The information contained on this website is not intended and does not constitute the providing of any legal advice or any legal opinions or services to any user thereof. The information available on or through this web page is not intended and shall not be used as a substitute for the advice and consultation provided by an attorney.  Any factual examples used to illustrate concepts are hypothetical and do not depict actual events or real persons.