do it yourself Bankruptcy software from Standard Legal

More Bankruptcy Articles

do it yourself Bankruptcy software from Standard Legal

Bankruptcy Articles

do it yourself Bankruptcy software from Standard Legal

What is Life Like After Bankruptcy?
By LJ Adama

A lot of people have built up fear in the word bankruptcy. If you hear that your friend has filed bankruptcy, first thing that may come to mind, is oh they will never get approved for credit again. Sure bankruptcy can be a hard thing to go through, because it means you're in financial trouble, but there is life after bankruptcy. The main thing to keep in mind after filing for bankruptcy, is all the things you have learned and not to repeat the harmful ones. Here we look at what happens after bankruptcy:

Rebuilding Credit After bankruptcy there are many things you can do to rebuild your personal and financial status. Everything takes time; especially rebuilding credit, but start slowly and work at it, you will succeed. Many banks will have secured credit cards you can get approved for, where deposits are made by you to cover the line of credit. Some credit cards come with very high interest rates, so they are not recommend for a compulsive shopper, but for someone who has learned from they're past financial errors. This credit cards can be useful for rebuilding credit, just put a small amount on them and every single month pay it off, even if it is 50 dollars, it will slowly help your credit score.

A chapter 7 or chapter 13 bankruptcy can have long term effect on your credit rating, where most credit your are given will be at a higher interest rate, so this is a good time to practice will power and save up for the items you want to purchase. Any future credit granted, you should repay promptly, this is key to the rebuilding phase. You will see your credit score go up every month if you take care of your bills in a timely matter.

Peace of Mind One main thing that will be better after bankruptcy is that you won't be receiving all of those harassing phone calls from creditors. This piece of mind is enough to never make you late on a payment again.

Friends and Family You may be worried about what friends and family think of you, but it shouldn't be a concern unless you personally told them about it. Even though bankruptcy is a public record, how many of friends do think read public records.

How it Affects Your Spouse If you are married in a non community property state your spouse will not be affected by the bankruptcy. In community property states you or your spouse can sign for a debt. So therefore the debt will become the responsibility of both people. These are issues you will have deal with after bankruptcy.

Of course your relationship may have been affected by bankruptcy, since you and your significant other have been going through the hard times together. As you rebuild your credit also work on repairing your relationship if needed seek counseling. But know in the end that you have grown as a personal and life and bankruptcy should improve for you with out the weight and stress that all the debt was bringing you.

LJ Adama writes articles on financial advice and bankruptcy help. To get a better understanding of the bankruptcy process and to learn about chapter 7 or chapter please visit

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Page updated 2:35 PM Thursday 9/11/2014