A financial disaster often leads a person to file for bankruptcy protection. Perhaps it is a medical emergency or a job lay-off that starts the rapid unraveling of a delicate budget. However, a bankruptcy should not be thought of as a second disaster. In fact, despite the embarrassment people in Maryland may feel about filing for bankruptcy, the results allow you to begin rebuilding your credit.
The first step one should take is to identify the reasons why one’s debts got out of control and make some changes. It may mean looking for a more secure job or creating an emergency fund. Along with this, setting goals is an essential part of any financial recovery. Having goals motivates people to make good decisions and systematically move forward.
A new bank account with automatic bill pay is one way that a person can make a fresh start. Additionally, although it may seem counterproductive to open a line of credit after a bankruptcy, applying for a secured credit card is an excellent way to raise one’s credit score. Research in this area is important because one does not want to be a victim of high interest rates or predatory lenders.
Working with a compassionate Maryland bankruptcy attorney makes all the difference in a person’s journey to financial freedom. Rebuilding your credit is a slow process, but one’s attorney can recommend many valuable resources. With careful planning and good advice, a person can overcome the burden of debt and move toward a brighter future.
Source: exopreneur.com, “5 Ways to Put Your Life Back on Track after Bankruptcy”, Dec. 13, 2016