Rebuilding Credit After Filing for Bankruptcy
Our clients love the relief they feel after filing for bankruptcy, but they’re not always excited about rebuilding their credit. Even though a bankruptcy filing can remain on your personal financial record for approximately 7-10 years, most people don’t know they can initiate the rebuilding process as soon as they file the papers. Fortunately, filing for bankruptcy allows you to simultaneously eliminate your debt and decrease your risk in the eye of creditors, which opens doors to a better financial future. But even though most people label bankruptcy as a new beginning, you will be required to show you’ve learned from the past and won’t repeat the same financial mistakes in the future. The bankruptcy attorneys at Prime Bankruptcy will help you navigate the credit rebuilding process with ease so you can get back on your feet.
Prime Bankruptcy’s Tips for Rebuilding Credit the Right Way
- Create a detailed budget. The best way to form better financial habits is to keep track of your monthly income and expenditures. Once you make a budget, you’ll realize how your past mistakes contributed to your unsettling financial state. Always think save first and spend second. Only spend money on what you need.
- Inform you bank to setup a savings account. As you make deposits each paycheck you will begin to build up an emergency fund that can be used to pay large bills with cash instead of credit. This will teach you to save for emergencies instead of using a credit card.
- Try using cash instead of cards. Using cash teaches you to use the money you have in the bank instead of borrowing what you don’t have.
- Learn to pay your bills on schedule. Debt increases when late payments add up, so the best way to combat that is to pay bills when they’re due.
- Avoid rent to own, same as cash, and other money scams. Remember, you’re responsible for your own financial state, so don’t let greedy businesses take your money away from you. Be smart and save up for large purchases.
- Order your credit report and make sure the bankruptcy filing is showing up on the current report. If filing for bankruptcy was your only choice you may wish to list a reason on your credit report.
- Get a job or keep your old one. You need income to pay bills and purchase basic living essentials. To get income, you need to work. Even if you don’t have your dream job right now, keep at it. It will be worth it down the road.
- For more help with rebuilding credit after bankruptcy, contact one of our lawyers at prime bankruptcy. We can help you get on the path to rebuilding your credit and improving your financial future.
Life After Bankruptcy for a Debtor
Living in the land of Lincoln, it is perhaps some comfort to know that even Abraham Lincoln filed for bankruptcy at a point in his career. He came back to achieve prosperity. So have many others including Walt Disney, P.T. Barnum and Henry Ford. It takes some discipline but can be done. A bankruptcy attorney can assist you in filing for bankruptcy and help you back to solvency in your life after bankruptcy.
Keep Your Job and Spend Wisely
It is obvious you must keep your job. If you lose your job, the whole spiral of debt may resume. It is also important to check your spending habits. You may file for bankruptcy only once every eight years. This means you are on your own for quite a while and must live judiciously.
Build Savings and Invest in the Future
It is good to save money so you have reserves for emergencies. When you spend it is beneficial to invest in things that will enhance your earning power such as education or, if you have a business, in assets that will increase your ability to deliver.
Admittedly having a bankruptcy on your record is not a plus. Still in time it comes off. Additionally, creditors know that with debts wiped away, you now have more means to pay bills. The first to offer you credit will likely be department stores. Use the card they offer to make modest purchases and religiously make the payments on time. Before long major credit card companies will be willing to take a chance on you. Take their credit cards and again be faithful in payments. As your record of payment becomes established, you will be offered better and better interest rates and ultimately be recognized as a good credit risk.
We assist clients to discharge their debts in bankruptcy and prepare for a new beginning after bankruptcy. We are Bizar & Doyle, a seasoned bankruptcy firm. We invite you to contact us for a free consultation about your debt situation and preparations for a brighter future.
Contact a Bankruptcy Attorney at the firm to discuss life after bankruptcy.