Making a financial recovery after filing bankruptcy in California
Those who file for bankruptcy in California must have a resiliancy plan to bounce back better and stronger than before. The right insights help secure financial peace of mind.
Coming to grips with mounting student debt and filing for bankruptcy in California is only the beginning of the journey. After enjoying the sense of elation that often comes after declaring bankruptcy, consumers must take steps to maintain their positive momentum. That way, they reach even greater heights of financial freedom and peace of mind. These tips offer a great starting ground for developing healthy spending and saving habits.
Hold on to bankruptcy documents
Those who file for bankruptcy should resist the urge to tuck their paperwork away out of sight and instead keep it within easy reach. Lenders may want to see a borrower’s financial records before approving the person for a loan, which could mean reviewing bankruptcy documents. Other lenders may claim a person owes them money. Referring to bankruptcy documents could help resolve the matter.
Get to the core of the money matters
The period immediately after filing bankruptcy offers a great opportunity for reflection. Consumers may ask themselves what led to their financial struggles initially. While student loans could serve as the principal reason for filing, contributing factors may exist. For instance, the stress of juggling and navigating student loans can lead to unnecessary spending as a coping strategy, which only worsens one’s financial health. Misunderstanding how to use credit cards also contributes to money woes. Fully exploring and comprehending the path to bankruptcy helps ensure a person does not go through the experience again.
Develop a rebuilding strategy
Bankruptcy can put a person’s credit through the wringer for several years. To build credit back up and develop healthy financial habits, consumers should have a plan to help their credit score spring back as quickly as possible. Applying for a secured credit card and using it wisely offers a brilliant start. Those who file for bankruptcy could also get in touch with their financial triggers, such as stress or anxiety, that drive them to make poor decisions. Understanding the psychological underpinnings of such triggers helps to replace them with healthy financial habits.
Tap into available financial resources
Banks offer student loans, but they also provide financial resources bankers may use to improve their monetary health. After completing the bankruptcy process, consumers may ask their bank about special resources and programs for those looking to improve their relationship with money. Connecting with a bank and other lenders could also make it easier to apply for loans in the future.
Consumers in California thinking of declaring bankruptcy deserve access to the right resources and professionals. Speaking with a legal representative may help a person understand where to turn and what steps to take.