Establishing financial independence after filing bankruptcy in Florida
There are several things those who file bankruptcy can do to reestablish their financial independence and move forward.
After filing for personal bankruptcy, many people in Florida wonder how they will reestablish their financial independence, set new goals and move forward. This is especially true since after filing Chapter 13 bankruptcy, the action remains on a person’s credit report for seven years, and a Chapter 7 filing can stay on a person’s credit report for up to 10 years. Although bankruptcy can have a severe effect on the finances of filers, there are things they can do to ensure their financial success.
Put together a budget
Filers should focus on putting together a budget and sticking to it after they go through the bankruptcy process. To start, filers should list their basic expenses and review them on a weekly basis to determine where they stand. Once a solid budget has been established, filers can start to set short and long-term financial goals for the future, which may include planning for retirement, saving for a child’s college education or even taking a vacation.
Gather bankruptcy documentation
Following the bankruptcy process, filers should gather and file all of the documentation related to their case so they have it to refer to later on. This is important because some lenders like to see bankruptcy documentation during the application process. It can also be used as documentation in case any creditors attempt to collect discharged debt in the future.
To rebuild credit, bankruptcy filers should start improving their credit by obtaining a credit card with a small limit. They should use this card to make purchases they can pay off on a monthly basis, or at least make payments on a large purchase that exceed the minimum amount. As they work on rebuilding their credit, filers should remember that doing this can be a lengthy process and that they need to be patient.
Begin an emergency fund
Those who have a budget in place may find that putting together an emergency savings account can help them prepare for future emergencies. One of the main reasons why this is important is because if a financial need does occur, debt does not have to be used to manage the expense.
Although moving forward financially following bankruptcy can feel overwhelming, taking these steps can help filers prepare for what the future holds. Those in Florida who believe that bankruptcy can provide them with the fresh financial start they are looking for should reach out to a lawyer in their area to discuss their options.