Is There Life After Bankruptcy?

Some of the largest misconceptions people have about bankruptcy involve the implications that filing has on your future. Some people wonder whether they will ever be able to own a credit card, car or home again after filing. So, for the curious, here is the truth: you can obtain any of these things. While the process may not be easy, you can get through it. More than likely, credit is going to be difficult to get for three to five years without paying high interest rates. A credit card might be a good option in order to build credit, but there are other ways to prepare for home and car ownership that don’t involve the risk and cost of high interest cards. Here are two practical ways to get started on the right foot after the fresh start of bankruptcy. Pay Bills on Time It might seem like a no-brainer, but there is no better way to get a fresh start than by paying your bills on time. The habit of paying bills on time and in full will reap benefits by not only from the good habits it produces but also by the help to managing expenses. For some people, this might mean a lifestyle readjustment or simplification, however that will depend on your current income. In the wake of the recent recession, many people are finding solace in a simplified lifestyle and refocusing on building up savings. Build Up Savings Open a checking and savings account if you don’t already have one and begin to build up the saving account. There is no better way to free yourself up from financial constraints than by having cash put aside for future emergencies, expenses, or large purchases. A good rule of thumb is to put aside 10 percent of your paycheck for savings. While that may seem like a lot at first, it you can fix that into your monthly budget, it will reap benefits in the future. In fact, many lenders require individuals who have filed for bankruptcy to put a down payment of between 20 and 35 percent in order to secure a loan. That is a significant amount of money. For a $200,000 home, that would be a down payment of between $40,000 and $70,000. The only way to successfully raise that amount of money is by disciplined savings. If you are seriously considering bankruptcy and you live in Southern California, contact the firm that focuses exclusively on California bankruptcy laws, Borowitz & Clark L.L.P. Not all bankruptcy attorneys are the same. While the process appears complicated, a California bankruptcy attorney will be able to help you understand your options and avoid making bad decisions. You get one chance to file bankruptcy right the first time. The Los Angeles bankruptcy attorneys at Borowitz & Clark know what they’re doing, because bankruptcy is all they do. Unlike many firms, they never leave a paralegal or secretary in charge of a case. That’s why their cases succeed at such a high rateā€”even higher than many other bankruptcy firms. For a free consultation, contact the qualified Los Angeles bankruptcy attorneys from Borowitz and Clark toll-free at 800-509-3200, or visit

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