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How to rebound after filing for bankruptcy

On Behalf of | Nov 5, 2021 | Bankruptcy |

So many people across the country seem to be struggling financially these days. The cost of living is skyrocketing thanks to rising inflation, so just making ends meet can be quite the challenge. Filing for bankruptcy is an option when it feels like there’s no way out financially. Contrary to popular belief, bankruptcy is not an economic death sentence. These strategies could help those in Michigan recover financially after a bankruptcy.

Monitor credit reports

Check credit reports regularly. After a bankruptcy, it is important that credit reports show that a person is no longer being held responsible for the debt that was erased by his or her bankruptcy. Monitoring credit reports will allow individuals to stay informed of any questionable changes as well as keep tabs on credit history.

Avoid credit repair scams

Those who file for bankruptcy are often bombarded with credit repair offers. Keep an eye out for signs of scams. These can be things like asking for payment upfront, asking for social security numbers or not informing a person of his or her rights. It can be helpful to consult with the Federal Trade Commission or the state Attorney General’s Office if there are doubts about a credit repair offer.

Learn from past mistakes

Take note of the fiscal mistakes that may have caused the situation. Identifying mistakes will help a person avoid making the same mistakes in the future. For example, if an individual was lured into high-interest loans or credit cards, it would make sense to avoid these things in the future. The goal is to identify weaknesses and make sure they don’t compromise the future.

A bankruptcy can be a chance at a fresh start and can help to create a more prosperous future. Those in Michigan who have questions or want to know more about bankruptcy could benefit by contacting a legal representative. An attorney who is knowledgeable in bankruptcy law can provide clarity and guide Michigan residents through the bankruptcy process.

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