It is no surprise that bankruptcy has both benefits and some drawbacks.  After all, filing for bankruptcy lets your creditors know that you simply cannot pay off the past due debt that you owe.  This in and of itself may lower your credit score, and this is one reason why some people will never consider bankruptcy.  It is important to keep in mind, however, that the benefits of bankruptcy may outweigh any of its negative effects in the long run, as you will be able to move forward with a clean slate.  Further, the immediate period after bankruptcy may be difficult for some, as it does take time to get your credit score back to a healthy number, but again, this may be the better option that will truly eliminate debt.

Financial Health is Well Worth the Wait

If debtors can bite the bullet and overcome the few drawbacks associated with bankruptcy, they may be able to purchase the home or car of their choice, or to make financial decisions that will not be hindered by past, lingering debt.  It may be difficult to buy a home or car immediately following the conclusion of a bankruptcy proceeding, but this may soon become a reality if creditors see that a debtor has been able to live without credit card and other debt in the time period following bankruptcy.

How You View Debt Can Keep You Financially Healthly After Bankruptcy

Debt should be seen as both good and bad.  There is good debt that can help you improve your credit score, such as home loans, auto loans, and student loans.  There is also bad debt in the form of credit cards and personal installment loans that have interest rates that can put anyone at a financial disadvantage.  As such, if you have successfully completed the bankruptcy process, the financial decisions you make once the process is complete can pave the way for living a financially responsible life that will hopefully never lead to the accumulation of bad debt for a second time.

Steps you can take to stay financially healthy following bankruptcy include, but are certainly not limited to, the following:

  • Avoid applying for credit cards, as your credit report is reviewed each time you apply for credit, which can lower your credit score despite the amount of debt you have at the time you apply;
  • Ignore pre-approval notices you receive in the mail, as these may be enticing you to obtain high interest credit cards;
  • Formulate a budget that will allow you to use only your income to pay off monthly bills, and limit your spending to only necessary items so that you do not feel the need to use credit cards to pay for life’s daily needs;
  • Start saving money for future years (no matter how small a savings account may be, it will eventually grow over time, enabling you to put money down for a home or car); and
  • Speak with a legal professional about options you can take to protect yourself financially in the future.

A bankruptcy and debt-relief attorney does more than simply help clients complete the bankruptcy and debt-elimination process.  An attorney also provides guidance to clients, giving them the information and advice they need in order to live without “bad debt” for years to come.

Contact Kansas City Bankruptcy Attorney Douglas Breyfogle Today to Schedule a Free Consultation

Completing the bankruptcy process can be a rewarding feeling, especially when you know once and for all that a former creditor will no longer be able to pursue collection activities that have kept you financially under water.  After eliminating your debt, it is important that you take all steps possible to only take on healthy debt, such as a mortgage or car loan.  To ensure you are doing everything in your power to protect yourself financially, you should consider discussing your financial situation with a skilled Kansas City Bankruptcy Attorney.  With more than twenty years of experience, Kansas City Bankruptcy Attorney Douglas Breyfogle has helped numerous Kansas City consumers become debt free through both the bankruptcy process as well as other debt-elimination tools.  No matter what type of debt you have faced and may currently be facing, there is likely a solution that can help you live financially healthy in the future.  If you would like to schedule a free consultation to discuss your financial situation with Douglas Breyfogle, contact our office today by calling (913) 742-8700.