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Tacoma, WA 98402

Life After Bankruptcy | Tacoma Bankruptcy Attorneys

October 17th, 2016 Bankruptcy Law

So you have successfully filed for bankruptcy…now what? We are often asked by our clients on what life is like after filing for bankruptcy. Whether you file for Chapter 7 or Chapter 13 bankruptcy, there are long-term repercussions of going through this process. However, it’s important to remember that time heals all wounds – even when it comes to bankruptcy. Consider bankruptcy as both a fresh start and a new challenge. Through taking the proper steps to getting your finances in control, you can recover unscathed.

Pens and coins

Our team at Tacoma’s Law Offices of David Smith would like to share a few tips to help guide you back on your feet after filing for bankruptcy:

Tip #1: Create and stick to a budget

We highly recommend creating a budget to track your income and expenses on both a daily and monthly basis. There are many helpful apps and free tools out there you can use to create a budget and monitor your spending, such as Mint and YNAB. However, creating a budget is the easy part. Remind yourself that sticking to a budget will help break habits that got you into financial trouble in the first place. Be sure to take time every week to review your numbers and where you stand. Once you have your budget under control, we suggest setting aside a small part of your income side for unforeseeable emergencies.

Tip #2: Make appropriate lifestyle changes

Making changes to your lifestyle can be hard especially when you are used to living a certain way. Through creating a budget and reviewing your assets, you should make the appropriate and responsible lifestyle changes to ensure you’re living within your means. Whether it’s cutting back on eating out, quitting online shopping, or getting rid of unnecessary subscriptions, there are various little improvements you can make to save money. Overall, decrease your spending where possible and get rid of payments that you don’t need.

Tip #3: Rebuild your credit

As someone who now has little to no debt, you’ve been given the opportunity to start rebuild your credit. Consider applying for a secured credit card. It can be used to mend your credit until you become eligible for an unsecured card. You can open a secured credit card by depositing money into an account, with the limit for the card equal to the amount in your account. By learning to control your finances and only spending what you have available, you will begin to establish better spending habits.

Although a Chapter 13 bankruptcy will appear on your credit report for up to seven years, the impact of the bankruptcy on your credit rating will diminish over time if you rebuild credit properly. It’s important to use your new credit card with cautious and utilize it as a credit-rebuilding tool. Be aware of credit card companies that will solicit you after the bankruptcy. We highly recommend avoiding any credit cards that charge high interest rates and checking your free credit score on monthly basis.


Along with our legal support and extensive experience in bankruptcy, the best thing about having the Law Offices of David Smith on your side is our guidance. Our friendly and compassionate team will help get you on the right track for financial recovery and success. If you have any additional questions or concerns regarding declaring for bankruptcy in Tacoma, Olympia, Puyallup, or the surrounding South Puget Sound, don’t hesitate to contact our office.