Chapter 7 Lawyer: Going Through Bankruptcy

While it can be difficult to make the decision to hire a Chapter 7 attorney and move forward with bankruptcy filings, sometimes it is the only decision you need to make. What can be even more difficult, of course, is stepping back from the brink. There are no two ways to do it – filing for bankruptcy is not a big deal for your financial records. The repercussions on your credit report are serious and unavoidable. It will take several years to rebuild that credit, but it can be done. Your first steps will involve finding a new perspective on financial responsibility. Here are some of the ways you can get through this unfortunate period and get over bankruptcy.

Emergency Funds

If you find a Chapter 7 attorney who is willing to give you advice about the future while helping you through the process, they may recommend starting an emergency fund. One of the easiest ways for a person to get in trouble with credit cards is when an emergency arises. The car breaks down, for example, or medical bills suddenly demand your attention. After bankruptcy, you may no longer have a credit card to depend on, so you need to make sure you have the money to handle these incidents as they occur. Promise to save a certain amount of money each month for such an eventuality.

Budget

Any Chapter 7 attorney you talk to will tell you that most people have little idea of ​​how much they spend relative to what they put in. They probably think they know, but unless you sit down and budget, you’ll be walking the tightrope without a net. This is especially true once you don’t have credit cards to depend on. Make your budget. Calculate exactly how much income you are generating and then write down your expenses. You can quickly realize that you are not contributing enough or that you are spending too much. If this becomes apparent, you will need to correct something on one side of the equation. In general, it is easier to cut expenses than to increase your income.

Rebuild your credit

Many people make the mistake of thinking that since bankruptcy clears their credit report in seven years, they will be eligible for a loan at exactly that moment. Is not always that way. You still have a large gap in your credit history that banks will not view favorably. Try to close that gap. Apply for a secured credit card and start rebuilding your credit history in the meantime.