Financial Recovery after Bankruptcy (Part 1)

May 23, 2013

After bankruptcy, debtors can begin rebuilding their financial standing by focusing on paying of their remaining debt and slowly building up their savings account.

After bankruptcy, debtors can begin rebuilding their financial standing by focusing on paying of their remaining debt and slowly building up their savings account.

Filing for bankruptcy is an effective way for individuals to discharge much of their debt in order for them to achieve a financial fresh start. However, once a person has filed for and completed his bankruptcy case, there will still be a significant amount of work and responsibility he will need to take on in order to rebuild his credit and his overall financial standing. Although it can take some time to get back on one’s feet after bankruptcy, those who are diligent and persistent about rebuilding their financial situation will be successful and can put their debt problems far behind them.

The following tips can help debtors successfully recover after bankruptcy so that they hopefully will never need to file for bankruptcy again in the future:

  • Pay off any remaining debts – Debts that are not discharged by bankruptcy and that, therefore, debtors are still accountable for repaying include (but are not limited to) student loan debts, alimony/spousal support payments, child support payments and any other court-ordered fees. With other debt (like credit card debt) discharged in bankruptcy, debtors should focus on paying down the remaining debt they have.
  • Build up your savings – Although debtors may not be able to put a bunch of money into their savings at first, being diligent about putting even $20 per month into one’s savings account will create a good financial habit that can help grow one’s savings over time. Having a health savings account is essential to providing a financial buffer in the event an unexpected debt or expense suddenly arises.

If you are facing foreclosure, are overwhelmed by seemingly insurmountable debt and are looking for a financial fresh start, contact the trusted Colorado debt relief and bankruptcy lawyers at the Law Office of Jon B. Clarke, P.C. Our experienced legal professionals are committed to providing each of our Clients with the debt relief assistance they need, and we will work tirelessly to ensure that our Clients’ cases are resolved as favorably and efficiently as possible. For a thorough assessment of your situation, along with expert advice regarding the best manner in which to move forward to unburden yourself from debt, call us at (866) 916-3950.

Categories: After Bankruptcy, Bankruptcy, Blog, Colorado Bankruptcy Lawyers, Debt Relief, Financial Recovery