Life After Bankruptcy

While many sources are quick to point out the consequences and benefits of bankruptcy, few address the important changes that occur in life after bankruptcy. After all of the details of your bankruptcy have been settled, your new debt-free life can begin. Although bankruptcy can drastically improve a person's financial situation, bankruptcy cannot change a person's behavior. Debtors who decide to file bankruptcy vow to be more responsible with credit and debt after their debts are eliminated. Sadly, many quickly fall into the same behavioral patterns that caused them to get into financial trouble in the first place. Recovering from bankruptcy is a long term commitment on the part of a debtor, but achieving financial responsibility is possible for anyone who is willing to follow some simple guidelines:

Find a Job and Keep It

Finding a good job is vital to regaining control of your finances. Consistent employment history proves to creditors that you are serious about becoming more financially stable.

Pay Your Bills

After bankruptcy, it is imperative that you pay your monthly bills on time. Although bankruptcy has given you a chance to financially start fresh, creditors need to see that you are consistently financially responsible in order to trust you as a debtor. Staying up-to-date with your bills will also keep you from facing hefty late fees and incurring any additional debt.

Learn More About Finances

There are many books and classes available that can teach you how to responsibly handle your money. The more financially educated and aware that you can become, the better. Understanding the ins and outs of debt is the first step to avoiding it.

Open a Savings or Checking Account

Showing that you are responsibly handling your finances is the key to regaining your reputation with creditors and other financial institutions. Being more aware of how much money you have and where your money goes each month will help prevent you from blindly falling into debt again.

Rebuild Your Credit

In order to reestablish your credit, you may need to obtain a credit card. Learn as much as possible about credit cards and debt before you decide to activate a card so that you feel better equipped to responsibly handle the credit given to you. If you learn how to use credit cards responsibly and commit yourself to paying your bills on time, you will find that you can quickly reestablish your reputation as a trustworthy and reliable debtor. Please view our download page for more information about credit restoration.

Bankruptcy can be a liberating decision if you are overwhelmed by debt, but recovery from the consequences of bankruptcy will take time and commitment. Be patient as you rebuild your reputation as a reliable debtor. Now that you have eliminated past debt, it may take creditors and other institutions some time to recognize your efforts to become more financially responsible. Life after bankruptcy may be difficult at first, but over time you will find that your decision to file for bankruptcy has truly given you a new lease on life.

For more information on bankruptcy, contact the board certified bankruptcy attorneys of Gipson and Norman in Clear Lake at 281-823-7016 or toll free at 888-512-6044.