Category: Bankruptcy

If you filed for bankruptcy and received a discharge, the stress is now behind you, but the work will still continue. Filing for bankruptcy is to give a consumer a fresh start, with out the burden of overwhelming debt. This is a change to get your life on track and start working hard to keep it that way.

If you filed for bankruptcy a lot of people may have put fear in you that your credit will be ruined forever. This is just not true and even after filing bankruptcy you can get approved for a loan in three years. The first few years coming out of a bankruptcy are the most important though, for rebuilding your credit and finances. Likely before bankruptcy, you were struggling, with your money and paying your bills on time. After bankruptcy, you need to learn how to manage you money and not get back in debt.

Credit

Rebuilding your credit after bankruptcy is the most important step that you need to work on consistently through out the next few years. You may want to work with someone who is a money management expert, so you can learn how to budget your spending. Being money responsible means keep track of your spending, you need to know where you money is going. This means writing things down, going over receipts every day, look at everything at the end of the month and find out exactly how your spending your money.

After bankruptcy you want to keep up on all your payments, for utility companies, rent, etc. Do not miss a payment and do not pay anything late, this will hurt your credit rating and in a few years when you might want a loan, you will not get approved. You want to spend time trying to raise our credit score and remember and everything takes time.

Banks will have secured credit cards you can get approved for after bankruptcy, where deposits are made by you to cover the line of credit. Be careful though some credit cards come with very high interest rates. If you use these cards with no self-control you will likely find yourself bank in financial trouble. If you must use a credit card, then make sure you pay off the whole amount, before any interest is acquired. This is a good way to build up your credit score, but do not start to early with these credit cards and only use them once a month for something small, no more than a fifty-dollar deposit. That way you can be sure to pay it off each month.

The one thing you can look forward after bankruptcy is loosing all the stress and financial worries that were probably keeping you up at night. The nice thing about starting with a clean slate and now worries is you can concentrate on other things, such as work and your health. It is important to realize how you got into so much credit card debt and learn from the mistakes so as not to repeat them.…