How to Improve Your Life After Bankruptcy in Texas

 Posted on March 04, 2024 in Bankruptcy

Declaring bankruptcy gives you a chance to start over financially. However, it can also bring money struggles as you reestablish credit and financial health. Although bankruptcy comes with legal limits, with the right help from a Texas lawyer, your life after filing can actually get better in the long run.

Review the Impact on Your Credit

Understand that bankruptcy devastates your credit score initially. However, well-managed credit after bankruptcy rebounds quicker than many realize. Generally, a Chapter 7 bankruptcy remains on your credit report for ten years. However, credit scoring models differentiate older bankruptcies from new ones; for example, a 3-year-old Chapter 7 hurts much less than a recent filing. Checking your actual credit reports reveals what potential lenders view. Monitoring progress monthly shows how each successful payment and healthy financial choice improves your access to new credit.

Establish Responsible Credit Accounts

Opening new credit cards or lines comes easier than many expect post-bankruptcy. Find secured cards tied to an upfront cash deposit or retail store cards easier to qualify for. Charge small amounts relative to limits and pay balances off monthly and on time. Doing so demonstrates responsibility and boosts your score quickly. Limits often increase 6-12 months out, allowing responsible access to credit that proves the bankruptcy faded into your financial past.

Contribute to Savings Whenever Possible

Bankruptcy provides the chance to restart healthy financial habits, saving included. While it may seem counterintuitive when rebuilding credit accounts, small automatic contributions to savings add up quicker than most expect. Even minor cuts like morning coffee outlays can funnel $50-100 monthly to accounts earning interest instead of paying it. Protect savings by earmarking uses like emergency funds or cash to replace worn-out household items. Building savings provides security and financial resiliency regardless of income level.

Explore Better Housing Options

Bankruptcy filers can qualify for mortgages backing home purchases 2-4 years out, often sooner. Federal housing programs offer options even earlier. Improved interest rates or more suitable floor plans become realistic with your recovering credit. Bankruptcy also frees you from burdensome current mortgages, if applicable, allowing more affordable rental or smaller-scale purchases. Explore all housing options to find comfort, practicality, and budget realities that match your life after bankruptcy.

Contact a Kerrville, TX Bankruptcy Lawyer

The practical steps you take surrounding credit accounts, savings, and major purchases make the most of your fresh start. You can embrace the freedom bankruptcy provides and the responsibility to establish healthy money management, benefiting your life for years to come. A New Braunfels, TX bankruptcy attorney can help you with bankruptcy and life after. CallLaw Offices of Chance M. McGhee at 210-342-3400 for a free consultation.