Recovering After Bankruptcy

bankruptcy lawyer njEveryone who files for bankruptcy does so as a last resort. It’s never an ideal situation but filing for bankruptcy can help individuals with overwhelming debt make a new start. Following the 2008 recession, over 1.1 million Americans made the decision to file for bankruptcy. Thankfully, there is life after bankruptcy. Bouncing back from your financial situation will take persistence and dedication, but it isn’t beyond reach.

Tips for Bouncing Back After Bankruptcy

Bankruptcy status gives you the financial freedom to make a fresh start, but your history of filing will remain on your credit report for years to come. You’ll have to expect challenges when attempting to get loans or new lines of credit. Bankruptcy status may even impact your ability to get a new job. Despite these struggles, millions of Americans recover from bankruptcy by remaining determined. Following are some basic tips to remember during your bounce-back period.

  • Pay all your bills on time. This step will significantly improve your credit score over time and help rebuild trust between you and creditors.
  • Get a small credit card and pay it off monthly.
  • Focus on becoming debt free. Do not fall into the temptation of taking on more debt.
  • Adopt a new lifestyle that limits frivolous spending.
  • Rebuild good credit.
  • Create a workable budget.
  • Use caution when applying for credit.

Adopting a New Lifestyle

Rebuilding your credit, paying your bills on time and creating a budget are all critical components of recovering from bankruptcy, but the most important element of bouncing back involves adopting a new lifestyle. This often overlooked step will help prevent you from returning to old habits and ending back up in debt again in the future. You may need to entirely re-budget your life including spending on rent and groceries to make ends meet. Keep in mind that your payment history makes up a whopping 35 percent of your overall credit score, so paying your bills on time needs to be a priority over other expenses. Even one late payment can drastically reduce your score. When applying for new lines of credit, only apply for loans or credit cards you are fairly confident you can get. Each time you apply, a new hard inquiry will show on your credit report. Too many inquiries can lower your score over time.

Contact a Cherry Hill Bankruptcy Attorney for a Consultation About Life After Bankruptcy in New Jersey Today

If you are struggling with debt, you may need a fresh start financially. An experienced bankruptcy and debt relief attorney can help you explore your options and determine the best course of action for you, your family, and/or your business. The experienced New Jersey bankruptcy lawyers at The Law Firm of Joel R. Spivack understand the nuances of NJ and federal bankruptcy laws, so we can help you protect your interests. Call us anytime at 856-488-1200 or fill out the online contact form to schedule a confidential consultation. We have an office conveniently located at 1415 Marlton Pike East, Suite 302 Cherry Hill, NJ 08034.

The articles on this blog are for informative purposes only and are no substitute for legal advice or an attorney-client relationship. If you are seeking legal advice, please contact our law firm directly.


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Attorney Joel R. Spivack is an experienced bankruptcy and residential real estate transactions lawyer in Cherry Hill, New Jersey. Clients come to us for legal services, but what we really provide is peace of mind. For more than 30 years, Attorney Spivack has helped people make wise, informed decisions about bankruptcy filings, debt relief options and residential real estate transactions.
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