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Recovering After Bankruptcy

Each year, approximately 1.5 million people in the United States decide to file for bankruptcy. The sad thing is that most people who file for bankruptcy feel like they are alone, but the truth is that countless people have been in the same situation and have made positive changes after their bankruptcies. If you are in the process of  filing for bankruptcy or if you are considering filing for bankruptcy, you should know that a  New Jersey bankruptcy lawyer can help you recover financially after you file for  Chapter 7 or Chapter 13

Post-Bankruptcy Credit Rehabilitation

The key to recovering after bankruptcy is being responsible and managing your debt in the years to follow. Below are some useful tips for recovering after bankruptcy:

  • After your bankruptcy, you are still able to obtain credit cards or personal loans. In the past, this was not as likely, but today lenders are more forgiving. When you take out a new credit line or loan, you should make timely payments and avoid overspending. Try to stay well below your credit limit and show that you are capable of managing debt responsibly.
  • Now is a great time to obtain your credit report and file disputes for inaccuracies. You do not want any false information on your report as it could be damaging. Instead, file disputes and work with credit bureaus to resolve discrepancies immediately.
  • Meet with a financial planner who can help you in the coming months and years. A financial planner can help you come up with a feasible budget and financial plan that will help you recover from your bankruptcy.
  • Know that within 1-2 years of filing for bankruptcy, you may be eligible for a home loan. The Federal Housing Administration has set guidelines when it comes to home loans and bankruptcy which may permit people to obtain loans even if they have bankruptcies on their records.
  • In 7 to 10 years, your bankruptcy will be removed from your credit report. Your bankruptcy is a not a permanent setback - you will be able to recover financially!

To arrange an initial consultation, contact a New Jersey Bankruptcy Lawyer at Liberty Credit Law, P.C.

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