In life, sometimes things don’t go as planned. Financial difficulties such as the loss of income, huge medical bills and unpaid debts from large banks can leave you feeling overwhelmed and defeated. For some individuals, bankruptcy may be the only choice that they have to secure a better future for their family and have a healthy state of mind.
What is bankruptcy?
Bankruptcy is a legal procedure in which an individual or a business entity declares that they cannot be able to pay their debts. Filing for bankruptcy can stop credit collectors from harassing you and you can be able to keep your home, your assets, and your license.
However, bankruptcy is a decision that has long-lasting consequences; therefore, you should not take it lightly. Don’t file for bankruptcy before consulting with a bankruptcy attorney. If you are looking for a bankruptcy attorney in Philadelphia be sure to contact the law offices of David M. Offen for a free consultation. You will learn how to can start afresh financially and enjoy life once again.
Here are 5 important things you should know about rebuilding your financial portfolio after filing for bankruptcy.
1. You Will Need To Let Go Of the Guilt and Shame
If you have gone through a bankruptcy, chances are you’ve been wracked by guilt, shame, and disappointment. Most people who file for bankruptcy report feeling like a failure at some point. However, if you want to rebuild your financial portfolio, you will need to stop beating yourself up about your current predicament and get yourself back to a place where you can learn from life and move on from the mistakes.
2. You, Will, Need a Strategy for Rebuilding Your Credit
Did you know that life after filing for bankruptcy can be very rewarding, especially for people who strategize properly? Don’t waste the opportunity that bankruptcy gives you. Think about how you got into bankruptcy in the first place. Address the root cause if you can and take steps to ensure that you will never have to go through such a financial calamity again.
3. Check Your Credit Report
Be sure to get your credit report from a reputable credit report bureau in your area. Once you get it, look for inaccuracies and dispute everything that is incorrect. This will help you to improve your credit score even faster.
4. Don’t Take a Loan If You Don’t Really Need It
After filing for bankruptcy, your credit score will be adversely affected. This means that if you take a new loan and make a late payment, your credit score will take a further plunge and you might end up with heavy penalties on your credit ratings. If you want to borrow money, make sure that you really need it and you are prepared to pay on time.
5. Give It Time
One important thing you should know about filing for bankruptcy is that your credit score will not be perfect until the day the bankruptcy record will fall off your report and this can take a significant amount of time. Be sure to use credit responsibly. Make all your payments on time and maintain zero balances. With time, your financial portfolio will shine again and you will be on your way to rebuild a bigger and better financial status.