Sometimes when a person in Nashua is facing insurmountable debts, filing for bankruptcy is the responsible thing to do. However, just because a person filed for Chapter 7 bankruptcy or Chapter 13 bankruptcy doesn’t mean that their post-bankruptcy financial future is ruined. In fact, rebounding financially from bankruptcy is sometimes not as hard as it might seem, and it is certainly better than letting debts grow and go unpaid.

After a person’s debts are discharged through bankruptcy, they should regularly check their credit report to make sure that they are not being held liable for discharged debts or other questionable activity. This also will allow them to track their improving credit history.

A person can also usually obtain a secured credit card post-bankruptcy. Before opening a secured line of credit, a person should save enough money to cover three to six months of living expenses. Once they have these financial savings to fall back on if times get tough, they can commit to opening a secured credit card by making a down payment on a line of credit. After making secured credit card payments on time for a year, a person may be able to open an unsecured credit card. And, making regular on-time payments on a secured credit card is likely to improve a person’s credit score.

Finally, it helps to understand what mistakes were made in the past. Sometimes, bankruptcy cannot be avoided. For example, a serious illness that could never have been anticipated could lead to medical expenses that push a person into bankruptcy. However, sometimes a person took on a high-interest loan or did not live within their means. Understanding why you filed for bankruptcy can help you make better financial choices in the future.

Ultimately, filing for personal bankruptcy is sometimes the best way to secure a fresh financial footing following a financial disaster. Filing for bankruptcy puts a stop to collections actions. Chapter 7 bankruptcy allows a person to liquidate assets to repay debts, while Chapter 13 bankruptcy allows a person to establish a manageable court-approved repayment plan to address their debts.