What Life After Bankruptcy Looks Like
Accomplished Knoxville lawyer helps clients recover their financial stability
Dealing with serious debt isn’t just a financial problem, but often is emotionally overwhelming. If you’ve concluded that your debt burden is unmanageable, you might be considering bankruptcy as the best means of getting the relief you need. As you examine your options, you should think not only about the immediate effects of filing for bankruptcy, but also how your life will be changed after the process is completed. At William E. Maddox, Jr. LLC, Attorney at Law in Knoxville, I have more than 25 years of experience working with East Tennessee clients and can give you valuable insight on what the months and years that follow the legal resolution of your debt issues look like.
Ways you can rebuild your credit after your bankruptcy case ends
Whether your bankruptcy involves a Chapter 7 debt discharge or a Chapter 13 repayment plan, your credit rating will suffer once you file. However, this is not a permanent condition. Bankruptcy should give you the ability to manage your household budget and rebuild your credit over time. Often, people are pleasantly surprised post-bankruptcy at how quickly things can improve if they are prudent. Specific steps you can take to bolster your financial standing after bankruptcy include:
- Stay on top of your finances and rating — Consumers have more tools than ever to check on their credit score and keep track of where their money goes. Errors frequently occur in credit reports, so it’s a good idea for everybody to see if they’re being punished unfairly. You can also use an app from your bank or someone else to create a detailed report of income and expenditures. This way, you can quickly see where changes can be made if you start having trouble paying bills again.
- Be careful with credit cards — It might seem strange, but getting a credit card can be a useful way to increase your credit score quickly. Of course, you need to make your payments on time and should watch your balance to make sure that you can stay above water even if you experience an unexpected problem such as a job loss or medical crisis. Remember that once you have received a Chapter 7 debt discharge, you cannot file again for several years after that, so the consequences of falling behind on your credit card bill could be even worse.
- Don’t be afraid — Some people believe that seeking bankruptcy protection prevents them from taking out a significant loan, such as a home mortgage or car loan, for many years. This might not be the case. As these types of loans are secured and scheduled to be paid off over a long time, lending institutions might be more willing to work with someone who has suffered a temporary financial setback. Creative terms and bringing in a co-signer for the loan might also help.
No one can predict the future, but my extensive background in this area can help you picture what life after bankruptcy might look like. Regardless of the path you choose to tackle your debt challenge, I am committed to helping you relieve your financial and emotional burden as quickly and completely as possible.
Contact a knowledgeable East Tennessee bankruptcy lawyer for a free consultation
William E. Maddox, Jr. LLC, Attorney at Law in Knoxville offers comprehensive advice to Tennessee residents regarding bankruptcy proceedings and credit restoration. For a free initial consultation regarding your options, please call 865-293-4953 or contact me online.