Resilience is no stranger to Michigan residents, and many families are able to revitalize their finances after a bankruptcy. At Phoenix Law, we understand the struggles associated with trying to pay down an overwhelming amount of debt, especially when it appears there is no end in sight. When you need relief, however, filing for bankruptcy protection may make a difference in your ability to attain your financial goals.
The prospect of having your credit ruined might appear to be a permanent situation, but in reality, there are ways you can rebuild and move forward after a bankruptcy. Many individuals find that it gives them a fresh start, and they also find themselves creating and sticking to a budget for the first time. As noted by Bankrate, creating and adhering to a budget helps you to bounce back from your bankruptcy and manage your expenses effectively.
You may have concerns about losing your home during the bankruptcy process. While selling your house and using the proceeds to pay creditors could help solve your debt-related issues, the court may not require you to do this.
Preparing a budget that shows you are able to afford your mortgage payments may make a difference in how you decide to file your bankruptcy. Maintaining active mortgage payments with a financial institution that reports your on-time payments to the consumer credit agencies may expedite your credit restoration.
After discharging your debts through bankruptcy, your credit score typically improves over time. Subscribing to a credit monitoring service that provides you with updates on your credit score may help by letting you know when you are ready to apply for a secured credit card.
Our page on bankruptcy FAQs provides more information about how you can make a financial recovery.