After you have declared bankruptcy, you have been given a new lease on life. You will have an opportunity to live responsibly within your means while you rebuild your credit and establish a new financial record.
Your New Lifestyle
If you filed for Chapter 13, you will have the opportunity to reorganize some of your payments. For the next few years, the court will be supervising your spending through the appointment of a trustee. If you want to assume new debt, you will need to receive permission from the court.
In the case of a Chapter 7 filing, you will be allowed to walk away from the majority of your debt. You will be able to manage your subsequent income, though you will be required to adopt a cash-based lifestyle, since the bankruptcy will be on your credit report for the next 10 years.
Repairing Your Credit
After bankruptcy, banks and creditors will want to see that you have learned from your mistakes. Therefore, you will need to demonstrate responsible financial behavior. The best way to accomplish this is to build a savings account, pay your bills and assume no new debt. If you have a credit card, you must pay your balance in full and on time each month.
Life after bankruptcy can enable you to work toward financial stability and peace of mind. If you would like to speak with a professional about filing bankruptcy, contact Terry E. Hurst, Attorney at Law today.