Making the decision to file bankruptcy is a big step and should not be undertaken without thorough consideration of all of the possible ramifications. For instance, filing bankruptcy will affect the individual’s credit rating and their ability to borrow money and obtain credit in the near future. The thing to keep in mind for individual’s considering filing bankruptcy is that there is hope to repair their credit after it is all said and done. For example, financial strategies such as obtaining a secured credit card and using it regularly while diligently paying it off monthly to keep a zero balance shows financial responsibility. Securing co signers for loans that the debtor pays in a timely fashion each month also shows responsible financial management. There are also many financial management agencies that have professionals on staff that specialize in debt repair services and other debt issues. The individual can check with the bankruptcy attorney who handled their case since many bankruptcy attorneys are very knowledgeable in credit repair and some even specialize in this area as well. They may be able to offer ways in which the debtor can aggressively repair their credit quickly.
Unfortunately bankruptcy may not always be avoided by disciplined financial management. Sometimes individuals are put into circumstances that are beyond their control, such as a job loss or major illness, that brings about massive debt and filing bankruptcy is the only way out. However, looking on the bright side, the debtor may end up debt free or close to it following the bankruptcy discharge. To take full advantage of this fresh start the debtor needs to be very careful of the circumstances that brought about the bankruptcy in the first place to avoid a repeat of the same situation. The debtor should take advantage of the required financial management courses that they had to complete to get their bankruptcy discharge from the court. If they would like further guidance they can seek the assistance of the many consumer counseling agencies that are out there. There are a variety of reputable Christian ministries and debt counseling companies that offer education in budgeting and personal financial management. The individual post bankruptcy needs to learn about saving, household budgeting, managing debt effectively, and retirement planning, among other things, in order to ensure a stable financial future. With proper financial managing most debtors in a few years are able to repair their credit and they may even be eligible to purchase a home. Filing bankruptcy is not the end, but in fact it is really just the beginning for many people at a fresh financial start.