B. Joan Davis Bankruptcy Law Blog on Lawyers.com

Filing for bankruptcy in Raleigh can be a potentially devastating and oftentimes embarrassing process. Despite the emotional upheaval due to insufficient funds, it is vital for one to immediately begin to rebuild their credit rating. It also provides a chance to learn from previous mistakes. In many cases, filing for bankruptcy offers a “fresh start,” which not only pertains to eliminating debt, but also involves the development of new spending and saving habits. Although “bankruptcy” has a strong negative connotation, there is a possibility to bounce back and reclaim a positive and healthy lifestyle post bankruptcy.

• If you own a car and want to keep it, be sure to sign a reaffirmation agreement with the car lender, meaning you intend to continue making monthly payments; this can prevent your vehicle from being repossessed and sold. Signing an agreement solidifies a trust between you and your lender.
• You need to establish new credit as soon as possible. While you may face a lot of rejection from traditional banks, there are some that will provide you with a secured credit card and the ability to deposit money into a savings account. Through the possibility of a passport loan, you can deposit money into a savings account and borrow the money to pay interest each month.

Even though these options are not particularly ideal, it is important to re-establish credibility and trust. One must always look ahead to the future.

• Make sure that all of your debts in your credit report have been cleared after bankruptcy.
• Do not co-sign a loan for anyone. Bankruptcy prevents you from eliminating any new debt for many years. If a co-signed loan goes bad, it will likely result in a negative judgment against you due to your previous financial history. Do not put yourself in a possibly rocky financial situation.
• Watch out for credit card debt. Credit cards are oftentimes the culprits when it comes to financial trouble. If you have any credit cards, be sure to pay your balances in a timely fashion. If possible, use the card only in emergency situations.
• Even if it seems impossible to bounce back from bankruptcy, try to stay positive and hopeful. You will face rejection; however, with resiliency and an aggressive attitude, know that you will eventually reach success.

This article has been provided courtesy of Raleigh bankruptcy attorneys Howard, Stallings, From & Hutson, P.A., 919-821-7700, www.hsfh.com.