Chapter 7 Lawyer: Overcoming Bankruptcy
While it can be difficult to make the decision to hire a Chapter 7 attorney and move forward with your bankruptcy filings, sometimes it is the only decision that can be made. What can be even more difficult, of course, is walking away from the edge. There are no two ways about it: Filing bankruptcy is not a big deal for your financial records. The repercussions on your credit report are serious and unavoidable. It will take several years to rebuild that credit, but it can be done. His first steps will involve finding a new perspective on financial responsibility. Here are some of the ways you can get through this unfortunate period and beyond bankruptcy.
emergency funds
If you find a Chapter 7 lawyer who is willing to give you advice about the future while helping you through the process, they may recommend starting an emergency fund. One of the easiest ways for a person to get into credit card trouble is when an emergency arises. The car breaks down, for example, or medical bills suddenly demand your attention. After bankruptcy, you may no longer have a credit card to rely on, so make sure you have the money to deal with these incidents as they happen. Commit to saving a certain amount of money each month for such an eventuality.
Budget
Any Chapter 7 lawyer you talk to will tell you that most people have little idea how much they spend relative to what they take in. They probably think they know this, but unless you sit down and budget, you’re walking a tightrope without a net. This is especially true once you don’t have credit cards to rely on. Make your budget. Calculate exactly how much income you are generating and then write down your expenses. You can quickly realize that you are not earning enough or that you are spending too much. If this becomes apparent, you’ll need to fix something on one side of the equation. It is usually easier to reduce expenses than to increase income.
rebuild your credit
Many people make the mistake of thinking that since bankruptcy wipes off their credit report in seven years, they will be eligible for a loan at exactly that time. That is not always the case. You still have a large gap in your credit history that banks will not look kindly on. Try to close that gap. Apply for a secured credit card and start rebuilding your credit history in the meantime.
