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Located in Quincy, Massachusetts, Levin and Levin, LLP was established in 1933 as a full-service law firm committed to providing clients throughout the South Shore with the highest level of legal representation available.

Is it the end of the world after going bankrupt?

| Nov 6, 2017 | Blog

After going through a personal bankruptcy, it is understandable that you would be worried about your financial future. Will your credit ever recover? Fortunately, you and other Massachusetts residents can rest assured that although it is stressful, a bankruptcy does not necessarily carry the bad rap that many people seem to think.

It is true that your bankruptcy will stay on your credit report for 10 years; there is nothing you can do about that. However, the financial decisions you make in the months to come will have a significant impact on your credit either continuing to suffer or gradually bouncing back.

Beginning again

You will, in fact, be able to start rebuilding your credit immediately after your bankruptcy discharge. You would want to start doing this by ordering copies of your credit report and checking it for errors and ways you can improve.

Developing good habits

Your bill paying habits will have a significant impact on your credit score. If you consistently pay your bills on time – even your monthly utility bills – your credit should begin to improve. At this time, you may consider applying for a secured credit card to further increase your ability to show lenders you are trustworthy.

It is also a good idea to routinely set aside a portion of your paycheck into your savings account, so you can rely on those funds in an emergency, instead of having to go further into debt or juggle bills to make it all work.

Taking advantage of timing

It may also give you peace of mind to know that lenders will not be concerned about you filing for bankruptcy anytime soon – after your discharge, you are not permitted to file again for another eight years. These days, many lenders are realizing the prevalence of bankruptcy and adjusting their lending habits accordingly. They understand that the period immediately after a bankruptcy can be an ideal time for you and others to borrow reasonably and begin rebuilding your life.