Life After Bankruptcy

In coming years, you may reflect on your bankruptcy through Vail A. Kaufman, P.A., as one of the smartest financial moves you've made. Nevertheless, you will need to first address some short-term financial issues.

To learn more, contact our Greenbelt, Maryland, office by calling 800-724-1621 or 301-850-2470 to schedule a free consultation with one of our attorneys.

Sticking To A Budget

Whichever form of consumer bankruptcy you file for, it will be important that you can live on a budget.

If you complete a Chapter 7 bankruptcy, most if not all of your debts will be discharged. The opportunity for new debt will be there soon after bankruptcy, but this will be high-interest debt on generally unfavorable terms. As a result, you should work to live on your earnings and any assets you retain. It is important that you stick to a budget, because you will be unable to file for another Chapter 7 bankruptcy for eight years.

While you are in a Chapter 13 bankruptcy, any debts will be reorganized into a repayment plan, requiring a monthly payment for three to five years. Again, budgeting is important. The repayment amount, while designed to be affordable, is a set amount that must be paid each month. Once you complete your repayment plan, you will not be able to file again for bankruptcy for another four years.

Borrowing Money

For the first few years after you complete a bankruptcy, it may be difficult for you to borrow money. Lenders will be aware of your bankruptcy history and will initially consider you a poor loan risk. Credit card companies may be much quicker to seek you out, but beware that any credit card offers will likely be at a high-interest rate.

Rebuilding And Repairing Credit

This isn't necessarily a bad thing, however. Once you get control of your finances, it is actually a good idea for you to obtain one of these credit cards. This is because by using it judiciously, you can slowly rebuild your credit. Depending on your income and ability to pay, you could rapidly improve your credit rating and your ability to borrow again.

The key is to always pay your credit card balance each month. Doing so will keep you out of financial peril while re-establishing you as a consumer who repays debts.

Imagining A Future That Is Debt-Free

At Vail A. Kaufman, P.A., with offices in Greenbelt and Columbia, Maryland, our bankruptcy lawyers have advised, counseled and guided many people through the bankruptcy process. Retain us, and we can help you to get out of debt and stay out of it forever.

To learn more about how we can help you, contact us online or call 301-850-2470 or 800-724-1621. We can discuss your options in a free, no-obligation consultation.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.