Many people think of bankruptcy as the end of a long, painful experience, but bankruptcy can also be the beginning of a new, much happier period in a person’s life. When filing for personal bankruptcy, whether through Chapter 7 or Chapter 13, many people find it helpful to keep their minds focused on planning for the future.
You will be able to rebuild your credit and your wealth after going through the bankruptcy process. You just have to be careful about it.
Stability is key
The key to rebuilding credit is maintaining financial stability as much as possible. This means having a steady source of income and a consistent place to live. Credit companies will see you as more reliable if you have held a job and stayed in the same place for a while. Likewise, when you’re ready to move on from your job or to move to a new home, employers and landlords typically want to see a stable history.
Another practice that helps with rebuilding your credit is to pay your bills on time as much as possible. You should be careful with credit cards, but it can be a good idea to keep them. Closing a credit card account can sometimes hurt a person’s credit rating.
Of course, all this is easier said than done. Keeping a job or an apartment is not always completely in our control, and it can be easy to fall into debt trouble again when using credit cards.
That’s part of the reason it’s important to seek help from an attorney with experience in consumer debt relief. A lawyer can help clients through the bankruptcy process and continue to work with them, giving them advice on how to manage their finances, resolve problems and rebuild their financial health.