Life After Bankruptcy

Everyone knows that life after bankruptcy can be stressful, but it is important that those who are considering filing for bankruptcy realize that this is not the end of the road for them. Bankruptcy always gets a bad rap as being a financial last option, but, in reality, more people filed for bankruptcy in the past decade than ever before, and recovery is more than possible.
               A helpful article from Daily Finance includes a list providing readers with the “5 Steps to Rebuilding your Credit, Finances and Emotions” after bankruptcy.  It’s worse a quick look, including these recommendations:
  1. “Let Go of the Guilt and Shame.” You are not alone! Plus feeling sorry for yourself will not make your situation any better, and can even make it worse. Rebuilding your life after bankruptcy requires work, dedication, and a positive attitude.
  1. “Reflect and Regroup.” Look back on why you ended up in the situation you were in, and write down all of those reasons. Making a list can help you avoid them again. Also regrouping by surrounding yourself by positive people who love and support you can help you stay focused and on track.
  1. “Create a Realistic Budget and Pay All Your Existing Bills on Time.”  Creating a budget will help keep you on track and make sure you don’t fall back into the same predicament (such as: drowning in debt). Even if you hate budgeting, make it a priority.
  1. “Pick a Credit Card That Will Help You Rebuild Credit.” This article suggests that you obtain a “secured” credit card. These credit cards are usually the ones that your bank offers (but not all banks).
  1. “Separate Fact From Fiction About Bankruptcy.” Don’t succumb to the “myths and misconceptions” about life after bankruptcy, such as never being able to buy a home or car, or get a credit card
Will I Ever Qualify for another Home Loan?
       The easy answer is yes, but it will not come automatically. After you spent some time rebuilding your credit, considering buying a home is actually quite possible.  The best way to show lenders that you are ready to acquire another home loan will requires you to reestablish your credit, and make all payments on time.
      
       Additionally, make sure to remain honest about your past bankruptcy, as they will likely find out anyways. Being honest with the lenders may actually prove more beneficial than not.
      
       Further, those who filed for bankruptcy often wonder what happens to their Home Equity Line of Credit (“HELOC”). One question in particular is whether the HELOC will remain on your credit report after you file? This question was posed on an article on Fox Business’s website. The answer depends on whether or not you reaffirmed the loan during your bankruptcy. Generally, if “your HELOC was included in your Chapter 7 bankruptcy “ and not reaffirmed, then it is likely it will not be on your credit report except to state that it was discharged in bankruptcy.
Can An Attorney Help Me?
If you come across any post-bankruptcy questions, or even pre-bankruptcy, speaking with a bankruptcy attorney, will likely provide you some ease. A bankruptcy attorney can help you assess your case based on your particular facts.

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