Once you’ve gone through a bankruptcy, there are usually some changes that you’ll have to adapt to. Since this is the first time you’ve ever considered a bankruptcy or started the process, it’s important for you to know what to expect once your bankruptcy is discharged.
Your life after bankruptcy is going to be different, because you’ll be in a different financial position. To start with, most people do go through credit counseling during the bankruptcy process. This should give you a better idea of the kind of budget you’ll have to work with and may even teach you new ways to handle your money. That’s good, because you should remember that it will be some time before you can file for a bankruptcy again, if needed.
Life after bankruptcy: A fresh financial start
You should remember that your life after bankruptcy is a fresh start. So, initially, you may struggle to get credit, to take out loans or to improve your credit score. The truth is that these limitations are in place because of the bankruptcy, because lenders now believe that you’re a riskier borrower.
However, over the next few months and years, you can start working on your credit score and raising it. Many people find that they can get credit again within a year or two. Some mortgage companies will work with people who have gone bankrupt in the past as well. So, there may be more opportunities for loans or the credit you need for major purchases relatively soon after bankruptcy.
Remember that it’s possible that not all of your debts were covered by the bankruptcy. You should make plans to continue paying on those, so you will rebuild your credit sooner.
In the end, this bankruptcy sets you up for more financial freedom. You won’t have as many debts hanging over your head, and you have the opportunity to move forward without taking on more debt if you choose. Your attorney will work with you to make sure you have all the options available to move forward successfully following bankruptcy, because you deserve that support.