Examining How You Can Get Your Life Back On Track After Bankruptcy

Many worry about what their life will be like after bankruptcy.  It actually won’t be as bad as you think, if you take the right steps after you file.  Some of the things you can do to improve your life after bankruptcy include:

Review Your Budget

Sit down and review what you spend each month.  Create a budget you can work with and stick with it.  Try to eliminate unnecessary expenses so that you can save money for future emergencies.  Some of the expenses you may want to consider excluding include: coffee (Starbucks), eating out, cable TV and your land-line phone service.

Pull Your Credit Report Before You File Bankruptcy And After Bankruptcy

Pull your credit report before bankruptcy and make sure all your bad debts are disclosed in your bankruptcy schedules and discharged.  After discharge, pull your credit report again and make sure the creditors you discharged are no longer reporting that you still owe them money. These errors can really hurt your credit score.  If they continue to incorrectly report to the bureaus after bankruptcy, seek the guidance of an attorney who can get the errors deleted. 

Consider Reaffirming Debts You Need

If you need your car and plan to continue to make your car loan payments after bankruptcy, you may want to consider entering into a reaffirmation agreement with the finance company. A reaffirmation agreement basically restores your obligation to pay the debt and excludes the debt from your bankruptcy discharge.  If you sign one, the lender may then be less likely to report to the credit bureaus that you included the debt in your bankruptcy.  Then make sure you pay the loan on time each month after bankruptcy.  When it comes to signing reaffirmation agreements, always seek the advice of a bankruptcy attorney, as the decision to sign or not sign can give rise to serious consequences.    

Apply For A Secured Credit Card After Bankruptcy

Using these credit cards will help you improve your credit score after bankruptcy.  Often you are required to put money down as collateral. If you don’t pay your credit card bill, the creditor can take the money you deposited and use it to off-set what you owe.  As you use the card and pay it off on time, your credit limit should grow. As your credit report starts to reflect you can manage this credit card, your credit score will improve and other credit card companies will begin to send you card applications.

Avoid Sub-prime lenders

Avoid payday loans and debts with sub-prime lenders, as these tend to hurt your credit score. 

Don’t Be Negative

Look at bankruptcy as an opportunity.  You have just wiped-out your debt and have a clean slate.  View each of the steps laid-out in this article as springboards to getting your life back on track.   

At Sapinski Law Office, S.C. we are very committed to helping our clients get their lives back on track after bankruptcy.  We even offer free credit restoration to those who file bankruptcy through our office.  We want to see you get a real fresh start!  To learn more call us today at #888-782-9423.  

How Bankruptcy Can Benefit You

According to the United States Bankruptcy Code, consumers have the right to file a bankruptcy petition and obtain relief from their financial obligations to get a fresh start, debt-free. Most consumers will file for Chapter 7, which liquidates non-exempt assets then discharges debt, or Chapter 13, which helps the debtor create a manageable repayment plan.  No matter what type of bankruptcy the petitioner chooses, he or she can obtain relief in the following ways:

1. End to Creditor Harassment

One of the most difficult parts of day-to-day life as a debtor is the constant reminder of debt in the form of harassing phone calls or letters from creditors. As soon as a bankruptcy is filed, an automatic stay is imposed that stops all activity against the debtor and his/her property. The stay stops just about everything, including collection notices, phone calls, utility disconnection and active wage garnishments.

2. Protection of Property

The bankruptcy stay will also stop any collection activity taken against a petitioner’s property, such as vehicle repossession and foreclosure. If your car has already been repossessed, you may be able to file Chapter 13 and get the vehicle back.  Chapter 13 will also help you repay your vehicle loan under terms that are easier for you.  For example, under Chapter 13 you can reduce the interest rate on the loan and, in some cases, you can force the creditor to only accept an amount equal to what the car is worth.  Chapter 13 also stops home foreclosure and gives you time to get current on mortgage loans.

3. Elimination of Debt

Bankruptcy can be effective at eliminating debt, especially unsecured debt. Unsecured debt refers to obligations not backed by a specific asset. Some common examples of unsecured debts that are dischargeable in bankruptcy include:

• credit card payments
• medical bills
• rent 
• utility payments

Remember, certain debts, such as recent tax debts and most student loans are not dischargeable in bankruptcy.

Secured debts are debts that are secured by some sort of collateral.  They can be eliminated in bankruptcy. However, if you chose to discharge (eliminate) those debts, you typically will be forced to return the collateral that secures the loan.  For this reason, most Debtors who file Chapter 7 often chose to continue to pay their mortgage loans and car loan payments. 

Contact Our Milwaukee Bankruptcy Firm For Help

At Sapinski Law Office S.C., we understand the stress and uncertainty that accompany mounting debt obligations. It is our mission to help our clients find the best bankruptcy or non-bankruptcy debt relief option to suit their financial needs. If you would like to schedule a free consultation with a Attorney Sapinski, give us a call at (888) 782-9423. Our bankruptcy firm has multiple locations throughout the Milwaukee metro area.