You have made the bold step to file for bankruptcy so that you can get a new start financially, but what happens once you have completed the process? Most people get to this point without knowing what to expect. You should familiarize yourself with what happens after you file for bankruptcy so that you can manage it better. Once you have filed for bankruptcy it will be reflected on your credit report which means that lenders can see it. Once they see that you filed they will obviously not lend you money. The best thing to do is to work on rebuilding your credit so as to clean up your credit report. Learn about the most common causes of debt.
The first thing you should do is come up with a way to pay off creditors every month. Remember, those same creditors who made you file in the first place are still listed in your credit report. If you want to regularize it the best thing to do is pay them off. Cut down your living expenses or take another job so that you can have enough money to service everyone that you owe. Every time you make a payment the creditors have to report it to the credit bureau who then indicates it on your report. If you do this consistently your credit report should get healthy enough for you to borrow again.
People often ask where they will get the extra money when they were so broke that they had to file for bankruptcy in the first place. It’s important to do thorough research on any attorney you wish to hire for your bankruptcy claim, find reviews for a well-established Texas attorney, here. If you’re not quite there yet, there are ways you can try to ease the burden yourself. We have already mentioned that you can get another job. Another option is to cut down on your living expenses. If you can write a list of your monthly expenses and then cut down everything that you don’t absolutely need you will find that you save a lot of money that can go towards your debts. As for how long bankruptcy will be indicated on your credit report, it depends on the kind that you filed. If you file Chapter 7 you get 10 years and if you file Chapter 13 you get 7 years.
Be very careful of any lenders who approach you with offers of credit cards after you file for bankruptcy – these usually have very high interest rates and you will end up with even more debt. Try and not take in any more debt until you can pay off what you already owe.