Filing for bankruptcy has become commonplace in the United States in the last several years. While it is not something anyone is eager to do, it does not carry the stigma it once did. Although this is often the best option to wipe the slate clean and move forward, your credit rating will take a nosedive.

Even though it may not have been the greatest before bankruptcy, this new addition can hinder your ability to get an auto loan, credit cards or mortgage for up to ten years. Working with a local bankruptcy lawyer can help you understand the ramifications and decide if this is the right choice for you. Once Chapter 7 or 13 has been filed and discharged, there are several steps you can take to begin rebuilding your credit.

Take a Breath and Regroup

Now that some of the weight of those finances has been lifted from your shoulders, the emotional impact of the discharge may hit. Throughout the process, most people don’t realize the how their life can change. There may be some disappointment and shame mixed in with the reality of rebuilding credit from the ground up. Take some time to reflect on what choices contributed to the situation and learn from them. Surround yourself with people who support you and can help you deal and healthily cope with the upcoming challenges.

Embrace a No-Frills Lifestyle

Depending on the type of discharge, the court may dictate that certain assets be sold to satisfy creditors. There may also be existing debts that have a specific payoff period, typically three to five years, designated by the court. As a result, frugality may be necessary. Downsized living quarters and tighter grocery and other spending budgets may be required. The Law Offices of Brent George can help you create a plan that meets the discharge requirements yet still allows you to move forward financially.

Rebuild Your Credit

Although it may be difficult in the beginning to rebuild your credit, it’s not impossible. Start with a secured credit card. Take some time to find one that has good rates and doesn’t report to the credit bureaus that it’s secured. Pay the bills that you have on time to show that you can be financially responsible. If you need to get a car or take out a loan, shop for lenders. You may be surprised at the options available.

Bankruptcy was designed to provide individuals and organizations a way to discharge some of their debts and start again fresh. With offices in both Oxnard and Thousand Oaks, The Law Offices of Brent George is an accessible resource that can walk you through the best options for your personal situation to get out of the clutches of debt and begin rebuilding your life.

Please explore our website, and reach out to us for any questions. Our first consultation is free!