Call A Trusted, Experienced LAW FIRM
Tsao-Wu & Yee LLP International Lawyers

How can you ensure that bankruptcy will be successful?

Some California residents are facing thousands of dollars in debt. If you find yourself among them, if might feel like overcoming this debt is a ceaseless task. After years of struggling, you might be ready to wipe your financial slate clean. It’s possible that bankruptcy could be a great option for you.

However, bankruptcy alone will not guarantee long-term success. If you choose to file, you may have to take additional measures to make the most of this opportunity.

Change spending habits

Credit card purchases account for a large portion of American debt. While many California residents end up in this situation because they use their card to cover essential bills, others may need to check their spending. Nobody wants to end up in the same debt all over again.

On a day-to-day basis, expenses can add up faster than you realize. Some of these expenses may even be hidden to some degree, such as ATM fees and even discounts. Contrary to popular belief, sales don’t always pay off. Rebates are easy to forget and buy-one-get-one deals can lure customers to purchase extra.

There are a few ways to get the most of your money. First, review your expenses and look for the purchases you regret and cancel any unused subscriptions or memberships. Second, make a clear budget to prioritize necessities after bankruptcy. If you find yourself forgetting to pay bills by their due date, set calendar reminders with notifications for your phone or computer.

Repair your credit score

After filing bankruptcy, your credit score might be lower than you would like. A low credit score can impact future opportunities, such as loan approval and low interest rates.

Therefore, you may want to find ways to raise your credit score, such as:

  • Disputing errors on your credit report
  • Applying for a secured credit card if needed
  • Keeping credit card balances low
  • Putting aside a few hundred dollars for emergencies

Bankruptcy does affect your credit score, but the benefits of starting over can outweigh any negatives. In order to make bankruptcy work for you, be sure to understand that recovering from debt is a process that may take time and dedication.

No Comments

Leave a comment
Comment Information
Email Us For A Response

Want To Learn More?

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Locations

San Francisco Office
4215 Geary Boulevard
San Francisco, CA 94118

Toll Free: 800-494-0390
Fax: 415-777-2298
Map & Directions

San Jose Office
99 North 1st Street
Suite 200
San Jose, CA 95113

Toll Free: 800-494-0390
Phone: 408-635-2334
Map & Directions

San Francisco Office
140 Geary St.
4th Floor
San Francisco, CA 14180

Map & Directions

Oakland Office
1110 Franklin Street
Suite 1
Oakland, CA 94607

Toll Free: 800-494-0390
Map & Directions

  • M & A 2017 Awards CorporateLiveWire
  • LCA | Proven Trail Lawyers
  • American Arbitration Association
  • Legal Leaders
  • Super Lawyers
  • The Bar Association Of San Francisco
  • Soba | Honoring The past| Inspiring The Future
  • Arag | Divine Into Life
  • Attorney Search Network | Find The Right Lawyer