Life after Bankruptcy

For individuals who have declared bankruptcy, life afterwards may involve a long and sometimes difficult recovery process. You have a fresh start but some negative effects from your bankruptcy. Your credit rating will be much lower and it will be difficult to get loans. Depending on the type of bankruptcy you declared, the bankruptcy will generally stay on your credit report for 7 or 10 years.  In many cases, it may not be possible to obtain credit for a home or car purchase. After a bankruptcy, you may be required to conduct your affairs on a cash basis, which may be good, as you will only spend what your income allows.

There are different types of bankruptcies. You should work with a bankruptcy lawyer to make sure that you file the type that is best for you. As a Tampa bankruptcy lawyer, I can assist you with that decision by ensuring that you are informed about all types of bankruptcies, their consequences, and conduct a bankruptcy evaluation to ensure that bankruptcy is the optimum solution for your situation. My firm serves Tampa, St. Petersburg, and the surrounding cities of Hillsborough, Pinellas, and Pasco Counties.

How to Recover from a Bankruptcy

Since a bankruptcy can lower your credit score by 200 or more points, one of your priorities will be to restore your credit. If you were able to keep your house and/or car, then making payments on time will help on that goal. Additionally, you may be able to obtain a secured credit card. These cards require you to deposit $300-500 into an account with the credit card company, against which you may charge items. By making timely payments on a secured credit card, you can begin to rebuild your credit. 

Having gone through a bankruptcy may impact your ability to rent an apartment, especially from a large apartment complex. However, since you are now debt-free, some apartment owners will give you the benefit of the doubt. If you managed to hang on to your home, your timely mortgage payments will not only help to improve your credit but give you a roof over your head while you're recovering. If you lost your home in the bankruptcy, you may have to wait 3 years or more to qualify for a conventional home loan and you will be facing some tough credit-score requirements.

Your best plan for recovering after a bankruptcy is to pay your bills, keep a bank balance, and watch your credit score closely.

To learn more about bankruptcy, contact the Tampa Bankruptcy Attorney at the firm today!