Filing for bankruptcy is often the lifeline Floridians suffering from unmanageable debts need to reclaim control over their financial future. However, many may wonder what their life will look like after the bankruptcy process is complete. Will their credit be ruined? Will their lifestyle change? The following is an overview of ways to ensure that the bankruptcy process leads to a fresh financial start, rather than a cloud hanging over your head.
It is important to note that while bankruptcy will affect your credit score, this will not last forever. Bankruptcy stays on a person’s credit report for 10 years in a Chapter 7 bankruptcy filing and seven years for a Chapter 13 bankruptcy filing. To rebuild credit, it can help to open a credit card and pay off the balance each month. It may be possible to obtain big ticket loans, such as a mortgage or auto loan, if you can have someone co-sign the loan with you.
Another tip is to make sure you have a checking and/or savings account and that you make sure it always has a positive balance. This can show potential employers or creditors that you have a stable source of income. To do this, it is also important that you are gainfully employed. This shows to potential creditors that you are dependable. Ensuring you have housing is also important to creditors. If you are unable to rent an apartment, living with friends or family may be a possibility.
A bankruptcy filing is nothing to be ashamed of. It shows that you are willing to do what is necessary to meet your financial obligations and move forward on a clean slate. Responsibility with your finances is important following bankruptcy, to ensure you can bounce back following a bankruptcy filing. Keep in mind that while there are consequences to filing for bankruptcy, they generally are not permanent. With some lifestyle changes, you can rebuild your credit following bankruptcy.