Bankruptcy

Many Thriving after Bankruptcy

By guest-writer

A recent article in the Wall Street Journal offers an interesting look at how a variety of American bankruptcy filers are doing in their post-bankruptcy lives. The findings are interesting and informative ? and, if you?re among those who have filed for bankruptcy protection in recent years, they may save you some time and worry.

Here?s a look at some of the highlights of life after bankruptcy these days.

• Credit checks & the job hunt: It seems that some people recovering from bankruptcy are finding that the job application process has an added difficulty: the credit check. While some states have made pre-employment credit checks illegal and the government prohibits public-sector employers from denying jobs on the basis of a bankruptcy filing, many private-sector companies are still running credit checks on applicants ? and many apparently frown at bankruptcy filings.
• Finding new housing after bankruptcy and foreclosure: Another hurdle many bankruptcy filers and foreclosure http://www.totalbankruptcy.com/chapter-13/stop-mortgage-foreclosure.aspx victims are reportedly facing is finding a place to live after their finances fall apart. While sources note that most people with bankruptcy and/or foreclosure in their past will have to work harder to find housing than someone with cleaner credit, it seems that many landlords are willing to take into account the circumstances surrounding a bankruptcy filing or foreclosure. In other words, if you were a victim of unexpected illness, injury or job loss (like so many bankruptcy filers), you stand a better chance of securing a new lease.
• High auto loan interest rates: Many people have reportedly had great difficulty getting an affordable auto loan after a bankruptcy filing, especially in the current economy. Some people apparently choose to find housing close to their children?s schools and near public transportation; others managed to get high-interest loans on used vehicles and stay current.

General Tips for Life after Bankruptcy

The good news about recovering from bankruptcy in the current economy is that you are by no means alone, which means that more people are beginning to understand that bankruptcy provides, in some cases, the only viable option for people in financial distress.

Here are some general post-bankruptcy tips:

• Make & keep a budget: Mindfulness is perhaps the most important part of staying within your means ? it?s far too easy to overspend if you don?t know how much money you?ve got at your disposal.
• Change your habits: Falling into your pre-bankruptcy financial habits will probably lead you back down the road to bankruptcy. So avoid payday lenders, pay off your credit cards each month and use cash if you can?t resist the urge to splurge on credit.
• Make a cushion: Saving money is key to making sure another financial catastrophe doesn?t undo you again. Even a small emergency fund can mean the difference between disaster and stability.

Full post as published by The Bankruptcy Blog on November 29, 2010 (boomark / email).