You’ve filed a bankruptcy claim, now what? Bankruptcy gives people who are in over their heads with debt and can’t seem to catch up financially a chance for a fresh start, as it allows you to discharge your debt and move forward with your life in a positive manner. Once you have spoken with a bankruptcy lawyer in Oklahoma and the process is set in motion, you may be wondering what the next step is. To start, filing for bankruptcy allows you to look back on the mistakes you have made and make a better plan for your financial future. Not only will your credit score go up once you file for bankruptcy, but you will be given the chance immediately to start rebuilding your credit and become more financially stable in general. The absence of debt hanging over your head will allow you to pay your bills on time, make mortgage payments, and come up with a budget that you can stick to based on your income and expenses.
The bankruptcy will stay on your credit report for 10 years and it may be difficult at first for you to get approved for loans or receive money from lenders. However, by adopting a positive attitude and focusing on the opportunity you have been afforded, you will have a better chance of rebuilding your life and your credit. There are a handful of steps that can be taken as soon as you make arrangements with your bankruptcy attorney in Oklahoma that will benefit you in the long run.
- Establish a budget
Perhaps most important to your new debt-free life is to establish a budget you can stick to. With this, you should focus on saving money wherever you can. In many cases, this means making a lifestyle adjustment and cutting out expenses you became accustomed to, such as that venti latte from Starbucks. Once you have a budget in place that takes into consideration all your bills, groceries, daycare, car maintenance, and so on, you will immediately be in better shape than you were before you spoke to your bankruptcy lawyer in Oklahoma.
- Know your limitations
Similar to setting a budget, knowing your limitations will be an important part of rebuilding your credit and finances after bankruptcy. This may mean skipping that family vacation you had planned and not going out to dinner when the rest of your friends are, both of which are imperative to your ability to save money and move forward debt-free. This is not to say you shouldn’t leave room for “fun money” and that you must now lead a boring life where you have to say no to everything, but it does mean you need to choose your battles wisely.
- Get a secured credit card
While this may seem like a double-edged sword, taking on a secured credit card once you have begun saving and have been sticking to the budget you set for yourself is an important step to rebuilding your credit. Secured credit cards differ from other credit cards in that you will be giving a bank or credit union a certain amount of money, and they will then give you a credit limit for that same amount on a credit card. This allows you to show that you can make payments on time without getting in over your head with debt and money that isn’t yours.
Making the decision to file for bankruptcy is not an easy one, but for many people it can be exactly what is needed in order to become financially stable and secure. If you have questions about bankruptcy or would like to talk to an Oklahoma attorney about the process, please do not hesitate to contact us.