Top 3 tips for life after liquidation

After filing under chapter 7 and having many assets liquidated, debtors are often unable to see the light at the end of the tunnel. By following three simple rules, life after liquidation can be bright and prosperous.

Don’t fall back into old habits. Many fall back into old habits even after spending months declaring bankruptcy and finally getting finances back in order. It’s easy to fall into the mindset of spending more money because your debts have been eliminated. Following this practice will very quickly put you back where you started and render your previous filing useless. Bankruptcy cannot be filed back to back as there are time restrictions between filings, often of several years. Being responsible with luxury purchases and having a financial plan can deter over spending.

Rebuild credit with the right company. After filing for bankruptcy, the lowering of the debtor’s credit score will undoubtedly cause higher interest rates. It’s good practice to accept this as fact and agree to the higher interest rate in the beginning, and then gradually lower this rate as credit scores improve. However, there is a difference in paying a higher interest rate and being hit with exorbitant fees and penalty rates. Researching the right line to credit is most important to improving a score.

Avoid credit scams. Companies offering to eliminate bad credit or instantly improve credit scores have no way of doing so. Do not fall victim to those who pray on the recently bankrupt and financially unsure. By using future credit responsibly, credit scores will naturally improve.

Find out the benefits of financial freedom with Clark & Washington, P.C. Schedule your free consultation to day by calling 770.488.9320.