Steps to Take After Bankruptcy

Congratulations on taking the first big step toward a new and better financial life! Bankruptcy is designed to give those in need a second wind – an ability to discharge the worst debts holding them back so they can regain control of their finances overall.

Filing for bankruptcy is just the beginning of this financial process.

Consider the following steps when rejuvenating your financial health:

  • Collect and protect all paperwork. Your lawyer should send you a copy of your bankruptcy petition in its entirety. This is a large document (generally about 50 pages) containing pertinent financial information, including details regarding your debts and assets. You should also have a copy of your debt discharge and any other documents filed in reaction to your case. All of these documents can come in handy in the future when you need to speak with new lenders about new credit options. Collect and store your files in a safe, moisture-free place.

  • Start a budget and regularly review it. Sit down and map out your income and expenses. Create financial goals for the upcoming month, year, and five-year marks. Going through this process will help you better understand where you stand financially and it can help you prepare for the future.

  • Prepare for unexpected expenses. Set yourself up for success by preparing for sudden, unplanned costs. Emergency funds are an essential tool for protecting against excessive credit card use that can quickly place you in staggering financial debt. Use this fund for the unexpected car repair, medical issue, or other unforeseeable event.

  • Consider new credit. Consider your credit options, but do so responsibly. Don’t get carried away. Credit has become an integral component of modern living, and you’ll be able to rebuild your credit following a bankruptcy by responsibly using new credit allowances. We recommend beginning with a small credit limit or card that can be paid in full every month.

  • Routinely check your credit reports. Let the dust settle from your bankruptcy filing in Florida for at least three to six months. Request a credit report every six months afterwards to see where you stand, what creditors are saying about you, and to ensure that all debt is being discharged correctly.

First Legal

Contact First Legal today for more information on how to regain control of your life and enjoy a strong financial future after bankruptcy. We have helped hundreds of Florida clients, just like you, towards a brighter financial future.