Life after Bankruptcy in Cook County, Illinois
Post-Bankruptcy Solutions Attorney Serving Tinley Park, Oak Lawn and Orland Park
At the Law Offices of Eric Zelazny, our job does not end after your bankruptcy has been discharged. We understand that although bankruptcy can wipe your debts clean and give you a fresh financial start, it does not guarantee you a successful financial future. Since it is likely you filed because of poor spending habits, you will need to make some lifestyle adjustments post-bankruptcy to ensure that you remain on solid financial footing. We deliver a comprehensive financial solution, putting our nearly two decades of experience to work to give you the tools and resources needed to succeed after the bankruptcy is over.
Here are some of the areas we assist you with to help rebuild your financial life:
Learning to Live on a Budget
Many people have negative associations to the word “budget” because they believe it puts restrictions on their freedom. In reality, it is just the opposite. When you live within a budget, you are able to organize your finances so you know how much money you have coming in every month and where it is all going. This gives you the freedom to spend allocated amounts in various areas with the peace of mind of knowing you are not digging yourself another financial hole. When you set up a budget and stick to it, you will start to see your financial picture improve quickly.
Within your budget, a certain percentage should be allocated to saving. The best time to start a savings plan is immediately after the bankruptcy is discharged because you will be debt free and should have some extra money left over each month. Opinions vary on what percentage you should save, but at least 10% of your gross income is a good minimum figure. With the remainder of your income, you should allocate enough to cover your monthly obligations such as housing, utilities, car payment, food, etc. with hopefully some left over each month for discretionary spending such as entertainment.
Contrary to popular belief, filing bankruptcy can actually help your credit score. For example, if you were already behind on bills and had several late payments, it is likely your credit report already had a high amount of adverse information. Since bankruptcy eliminates most unsecured debt, there will be no more late payments reported after it is discharged. When you file bankruptcy, it will remain on your credit report for up to 10 years and will impact your credit score during that time. However, creditors tend to give more weight to recent financial history when deciding whether or not to grant you credit. This means that with some proactive strategies such as opening secured credit card accounts and making on-time payments, you can often rebuild your credit within just a couple years.
Life after bankruptcy is just as important as the actual bankruptcy process. If you are not prepared to make some adjustments, you may repeat the same mistakes you made prior to filing. This is why we provide guidance after the bankruptcy is over to help ensure a brighter financial future. If you have financial difficulties and are considering bankruptcy, contact the Law Offices of Eric Zelazny today at 708-888-2299 for your free consultation. Our law offices represent clients for bankruptcy and IRS Issues in Joliet, Tinley Park, Mokena, Frankfort, Orland Hills, New Lenox, Will County, Cook County, DuPage County and surrounding Illinois communities.