Most people never actually want to file bankruptcy, but if you find yourself drowning in debt that you can’t get out of, sometimes you have no choice. If you have never filed before, you may be wondering what to expect once you’ve done so.
How It Affects Credit
Some people mistakenly believe that bankruptcy means you will have bad credit forever, but it is important to put things into perspective. By being unable to pay your bills, you were already doing damage to your credit. Filing bankruptcy may not be optimal, but it does allow you to begin to rebuild. Although a filing may show up on your credit report for as many as 10 years, you can still work to re-establish your credit almost immediately. Some people have even been able to finance homes without a couple of years of their bankruptcy being discharged.
Tips for Living After Filing
It is important to use your money responsibly after filing bankruptcy. Of course, you should keep your job to pay debt and keep up with everyday expenses. Avoid making extravagant purchases, invest in something that will help you build your future and begin to create an emergency savings fund. Finally, work to build our credit by accepting the first credit card you are offered, making modest purchases and paying them off on time. Filing for bankruptcy is a serious but sometimes necessary decision. To learn more about the process and how it affects your life, call Lynch & Belch, P.C.