What Happens After Bankruptcy?

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Learn What to Expect From a Fort Lauderdale Bankruptcy Lawyer

Many people often are weary to file bankruptcy or refuse to do so outright because they are afraid of what will happen after they do. The truth is there is a lot of misinformation or closely-held beliefs regarding bankruptcy that are just not true at all. Life in the immediate term after filing bankruptcy will continue to be difficult, and the road to financial recovery is not one that you can easily complete in a few days or even months, but by sticking to your carefully-developed plan, you could emerge from the ordeal in better financial condition than you’ve ever been in.

Before filing for bankruptcy, it’s important you discuss your plan for life after consulting with a Fort Lauderdale bankruptcy attorney. Loan Lawyers have provided reputable counsel and high-quality advocacy for more than 5,000 consumers across our more than 100 years of combined experience.

We are dedicated allies to our clients, and we strive to help each and every one obtain the financial freedom they are seeking. We firmly believe everyone deserves a second chance, and we treat everyone with the utmost professionalism and tact that they expect from a reputable law firm.

Want to know more about what will happen after declaring bankruptcy? Call Loan Lawyers at (844) 344-4813 and speak with a member of our staff today, starting with a free case evaluation.

What Will Happen After You File

Many people think they won’t be able to obtain credit cards or a loan for the next 10 years or more. This is completely false. In fact, many financial institutions offer low-limit secured credit lines which allow those who have declared bankruptcy to begin rebuilding their credit score almost right away. You may see higher interest rates initially, and for the first few years it may be difficult to obtain any major loans or lines of credit due to a significantly reduced credit score, but that doesn’t mean you can’t immediately begin rebuilding and start pushing aside old negatives on your credit report with an abundance of positives.

However, while there are trustworthy and reputable institutions, there are also a number of unscrupulous companies who try to prey on those who have just declared bankruptcy in order to keep them in debt. These companies will often offer “too-good-to-be-true” deals of low interest rates and higher limits. However, the fine print often includes things like activation and monthly fees, which are added to the principal balance, quickly putting you right back where you started.

What You Should Do After Declaring Bankruptcy

The road to financial recovery is one that you must follow and be diligent about, but those who manage to stick to their plan often develop better money habits and could emerge with a better financial standing than they ever had before.

Here are some things you should make sure you always do after declaring bankruptcy:

  • Make your monthly payments on time. Missing even a single payment can result in tremendous penalties and further damage your credit rating, making the recovery process longer and more difficult. When your credit score is already low, you don’t want to erase months or even years of hard work with a simple mistake. Be sure you set aside money to make each payment well in advance and make sure they’re all done on time every month.
  • Don’t fall into debt. Only spend money you have. Period. If you plan on making a purchase with your credit card, only do so if you have the money to pay it off afterward. This will help you keep your balances low and manageable, which will only help you improve your score. If you don’t have the money to pay for it now, don’t make the purchase unless you absolutely must (such as to pay a utility or other necessary expense).
  • Don’t be afraid to use your credit card. Having a credit card open is one thing, but a credit card that lies dormant with no payment history doesn’t help you all that much, and may actually look rather poor on your overall history. Instead, you should use your credit card to pay for things, but make sure you do so sparingly and always pay everything off as soon as possible.
  • Choose new credit lines carefully. As stated previously, a number of predatory creditors will look to immediately entrap you in debt once again once you sign up. Always be sure to do a careful review of the terms of each new credit line you are considering, and try to keep the number of lines you have to a minimum in the first few years following a bankruptcy declaration. After two or three years, consider obtaining another (such as a car loan) in order to rebuild. After a while, a few open credit lines with a clean history can dramatically outweigh a past bankruptcy declaration.

For more financial and credit rebuilding advice, speak with a member of our team! Contact Loan Lawyers now and get the help you need with bankruptcy and debt.