Tips from a Bankruptcy Attorney in St. Charles, MO, to take Advantage of a Second Chance

Bankruptcy does not last forever. A Chapter 7 is complete in a few months, while a Chapter 13 can take up to five years. In either case, the day will come when the notification will come from your bankruptcy attorney in St. Charles, MO, that it’s officially over. Take a deep breath and plan a small celebration. It’s well deserved.

Plan for Emergencies

Now, there should be enough income to pay the bills and have some cash left over. Put some of that money into a savings account for emergencies. When the car breaks down or there’s another unplanned expense, have the money available to cover it. Don’t get into trouble by treating credit cards as an emergency fund. Plan on maintaining an emergency fund of at least $3,000. Pay yourself first.

Live on a Budget

Bankruptcy was put in place to give people a second chance, states a bankruptcy attorney in St. Charles, MO. Everyone makes mistakes, financial and otherwise. For most people, filing for bankruptcy is an once-in-a-lifetime event caused by overwhelming medical expenses or the loss of a job, among other reasons. There are a lot of ways to budget, easily found in an online search or in a book. Living within one’s means can’t protect against all of life’s challenges, but budgeting greatly reduces stress.

Rebuilding Credit

• Bankruptcy stays on credit reports for 10 years, but that doesn’t mean that it takes 10 years to rebuild credit. The catch-22 is that in order to rebuild credit, it’s necessary to get credit.

• After a bankruptcy, credit card offers will show up in the mail. These are high-interest rate cards with high fees. Don’t accept any of these cards.

• Regular mortgage payments will help to rebuild credit, providing that the loan was reaffirmed while the bankruptcy was active. Otherwise, future mortgage payments are not reported to the credit bureau. Rent payments may or may not be reported to the credit bureau.

• Pay all bills on time. Automatic deductions are helpful. Bill due dates can also be noted on a calendar. However it’s done, make timely payments. Some of those payments will be reported to the credit bureau and gradually help to improve the credit score.

If you’re wondering if bankruptcy would give you a second chance, talk to a bankruptcy attorney in St. Charles, MO. The law firm of is dedicated to assisting people in achieving a stable financial future. Contact them to discuss your legal options.