Navigating Your Way Out of Bankruptcy
Reaching the other side of bankruptcy can seem like a strenuous, long-term process to heal your credit and move on with life. But it doesn’t always have to be this way. There are steps you can take right now to begin rebuilding your credit and feeling financially comfortable. Here are four things to consider:
1. Understand What is in Your Credit Report
Your credit report is a source of information lenders use to decide whether or not they want to do business with you. Make sure to check your credit report and read through it carefully regularly. This way, you can identify any errors and correct them as soon as possible.
2. Create a Budget and Stick to It
Creating a budget and adhering to it is essential for managing expenses and eventually becoming debt-free. It will take time, patience, and dedication to get back on the right path, but it is possible. When creating a budget, be realistic about your goals and prioritize spending money on essential items like food, rent/mortgage payments, utilities, and transportation.
3. Consider Taking Out a Secured or Credit-Builder Loan
A secured loan or a credit-builder loan can be used to start rebuilding your credit post-bankruptcy. With a secured loan, you’ll typically require collateral (like a car or home), and the lender will set up repayment terms that are in your best interest.
Alternatively, a credit-builder loan is similar but will not require collateral. Instead, you will use the loan to build your credit score. The lender will report payments to the major credit bureaus, which in turn, can help improve your credit score.
4. Talk with a Bankruptcy Attorney
At the end of the day, an experienced bankruptcy attorney can help you navigate the complexities of filing for bankruptcy and getting back on track. They can provide advice and guidance to help keep your finances in order and lead you toward financial freedom.
Our team at Resnik Hayes Moradi LLP has been a top-rated bankruptcy firm in Los Angeles, CA, for years and has helped countless individuals through the bankruptcy process. Get started today by discussing your case in a free, 30-minute consultation by calling (213) 344-0043.