Credit Recovery - Bankruptcy Aftermath
Perhaps the simplest advice is to start at the begining of this website and carefully follow the advice about starting, building and protecting your credit.
If an unexpected event was the source of the bankruptcy, make sure you’re taking care of yourself and accepting family and friends’ offers of help while you’re sorting out your financial situation.
If poor credit management caused the debt problem, think about getting more professional counseling to help identify the cause of overspending and what potential “triggers” to look for so the problem doesn't come back to haunt you.
Allow yourself to make a clean quilt free new begining.
Credit Report Correct?
Within 60 days after the bankruptcy is discharged pull a credit report and make sure the bankruptcy and related ceditors are reported correctly and none of the discharged creditiors are still reporting late payments or other misinformation. As you re-establish good credit make sure that is also being listed correctly.
Budget First & Stick To It!
Creating and sticking to a budget is the greatest tool for your money management confidence. A budget is best tool, a backbone to a new, financially secure future. Maintain self-control over your spending. Having a budget and sticking to it puts your financial reality on paper and keeps it on track
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Keep employment history, residence and payment habits stable. Future creditors like to see that you have a track record that is stable. Stay in your current residence and with the same employer. Pay your bills on time or even ahead of time. Make more than the minimum payments if possible.
Credit Cards!!!
Spend time reading and comparing offers before accepting the first card offer that comes along. Keep in mind that having a budget and using the card wisely will mean that when a better card offer comes along you can switch from the old card to the new card with little hassle. Pay the old card balance on the next monthly statement and send them a letter stating you are ending your credit relationship and moving on. Keeping a minimum credit limit, no activity card may prevent you from getting a better card with more favorable terms and larger credit limit.
If you can’t get a credit card because of your bankruptcy, try for a secured card is when you deposit money into a savings account with your local bank and then they give you a credit card with a line of credit for the amount of money in your account.
Save Money Where You Can
Plan ahead about future expenses. Part of managing money wisely means thinking ahead about potential expenses in the near or long-term future. Then, having a plan for how to be able to pay for them.
Begin by making a list of your bi-annual or annual insurance premiums, car inspection renewal costs, budget for those expenses! Remember, the goal is very simple - keeping as much of your cash as possible. Learning to use credit to make life easier and saving even more money. Playing the game to spend less, save more, pay the legal minimum in taxes and planning for the future.
Look back over the Emergency Section and plan to follow that advice as well.
Future Employment and Credit
If you are making changes and questions come up answer them accurately and simply. The facts can and probably will be checked. No need to go into great detail. If the bankruptcy resulted from an unforeseen event it will be a minor point. If you are applying with a financial firm the questions may go deeper if the bankruptcy cause is poor money management.
