5 Tips for Dealing with the Aftermath of Bankruptcy

For many people, facing bankruptcy can seem overwhelming. Your finances are about to change in major ways, so it helps to be prepared and have a plan of action to get through the months and years following your bankruptcy.

Some Steps to Deal with Bankruptcy

  • 1.    Start fresh. If excessive debts brought on your bankruptcy, it’s a good idea to reevaluate and reform your spending behaviors. Learning to live more frugally can’t hurt, and it is usually a big help in the long run.
  • 2.    Consider a secured credit card. See about obtaining a secured credit card, make small purchases and pay off the balance on time each month. This requires a deposit that serves as a credit limit, but some companies will raise the limit without additional deposits for borrowers who make repayments on time. 
  • 3.    Pay your bills. This should go without saying, but be sure that you budget your monthly expenses to ensure you can pay your rent/mortgage, utility bills, and other costs. Doing so can also help rebuild your credit after bankruptcy. Cutting down on some luxury services – like selecting a new cable or Internet plan – may help reduce monthly bills to ensure they’re paid each month.
  • 4.    Request copies of your credit report from all three credit bureaus. Make sure that all your debts are listed as “discharged under bankruptcy”.
  • 5.    Save! Make room in your budget to place some money in a savings account each time you are paid. Having extra funds in a savings account can help you better handle any unexpected expenses without relying on loans or credit cards.

It is possible to recover from bankruptcy and go on to a better financial future. Consult with a bankruptcy attorney for assistance throughout the bankruptcy process, and for answers to common questions or confusion that may pop up when filing for Chapter 7 or Chapter 13 bankruptcy.

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